Europe ECJ to decide on asylum case that could limit member states' ability to transfer asylum seekers back to point of EU entry The Irish Times reports that an asylum appeal case referred to the European Court of Justice could set an important legal precedent affecting thousands of asylum claims in the EU. Five asylum seekers have launched an appeal against a transfer order to Greece made by the Irish Minister for Justice issued under the Dublin II regulation - the EU law that stipulates asylum applications should be decided in the EU state where a person first arrives. They do not dispute arriving first in Greece but they allege their human rights would be infringed if they were returned to Greece, because they argue it does not operate a fair or humane asylum system. The appeal against the transfer draws on advice issued by the UN High Commissioner for Refugees (UNHCR) in December, which asked all EU states to refrain from transferring asylum seekers to Greece because of shortcomings in its system. If the appeal is upheld it could severely limit member states' ability to send asylum seekers back to Greece and other member states. The British Court of Appeal has also referred a similar case to the ECJ. Eurozone's €440bn bailout fund up and running after Italian approval The Irish Independent notes that the €440bn eurozone rescue fund is now operational after the Italian Parliament approved the plan. The vote in Rome yesterday means at least 90 percent of the 16-nation shareholders in the European Financial Stability Facility (EFSF) have completed legislative approval. The Italian approval allows eurozone governments to issue guarantees for any debt raised by the EFSF, which could then be lent to struggling governments. MifID review could see overhaul of financial market rules; New EU supervisor could be awarded powers to investigate As part of a review of the EU's Markets in Financial Instruments Directive (MiFID), the Committee of European Securities Regulators (CESR), soon to be turned into the European Securities and Markets Authority (ESMA), is proposing an overhaul that will change business models of stock exchanges, brokers, banks and new trading venues, reports the WSJ. One key recommendation is the mandatory creation of a consolidated "tape" or "pipe" that contains all the prices from share trades across the whole market to give investors a comprehensive view. The CESR wants a revised MiFID to say that unless the market comes up with a consolidated tape within about two years, ESMA can set one up. Bloomberg reports that the proposals also suggest new powers for ESMA, allowing them to investigate and set standards for high frequency traders. Meanwhile, Open Europe Director Mats Persson features in an article in Global Risk Regulator, discussing the forthcoming European Supervisory Authorities (ESAs), which he describes as looking like "the first step towards a European Securities and Exchange Commission". On the negotiations, which could see the ESAs operational by January 2011, Mats added: "I don't really understand the rush. We question whether the ESAs will actually address any of the underlying causes of the financial crisis. And, we do not subscribe to the view that if the ESAs are not up and running by January 1, it will be a disaster. On the contrary, it might be a good thing to allow more time to properly work through these proposals and ensure they make sense". New EU rules on bankers' bonuses expanded to 2,500 City firms The Financial Services Authority has proposed expanding the firms covered by rules on bonuses and compensation from 27 of the biggest UK banks, to 2,500 banks, building societies and hedge funds to comply with EU rules on bonuses, entailed in the Capital Requirements Directive. The EU's proposed rules would see employees required to defer 40 to 60 percent of bonuses for three to five years, while half of any immediate bonus must be paid in shares or in other securities linked to the bank's performance. However, according to the FSA's interpretation, firms may be considered exempt from part of the pay restrictions if they are not regarded as big enough, or important enough, to pose dangers to the stability of the financial system. The FSA will now consult the financial sector on the proposal with a view to making the new rules effective from 1 January 2011. FSA press release BBC: Peston blog Guardian Bloomberg FT CityAM Economic confidence boosted in Europe but down in Spain EUobserver reports that economic confidence in Europe is at a two-year high, according to the Economic Sentiment Indicator produced by the European Commission. However, results were uneven within the eurozone, with confidence up in countries including Germany (up 4 points) and France (up 2.6 points), but down in Spain (2.2 points). Meanwhile, the Guardian reports on national strikes in Greece, with reports of petrol pumps running dry, and the government launching emergency mobilisation legislation to force striking drivers back to work. EUobserver European Voice EUbusiness EurActiv.es Guardian FT: Analysis EurActiv Commission to appoint an unnamed "technician" to oversee implementation of data transfer agreement with the US EUobserver reports that the European Commission will send a "technician" to Washington to oversee US information searches of European bank transactions data, as permitted under the Swift agreement which enters into force on 1 August. It is an interim measure as the search for a permanent supervisor could take three months. International anti-counterfeiting treaty could limit developing world's access to cheap medicines European Voice reports that five campaign groups, including Oxfam, have warned that the international Anti-Counterfeiting Trade Agreement (ACTA) currently being negotiated by the EU, could deny patients in developing countries access to cheap generic medicines. The secrecy of the negotiations has received continued criticism. A leader in the Economist argues that the EU's banking sector's problems are too big to be resolved by the recent stress tests alone. Economist: Leader Irish Times: Fell Irish Times Berlingske Tidende Zapatero to face tough test passing autumn budget An article in the Economist argues than Spanish PM Jose Luis Zapatero will face tough upcoming tests with passing an autumn budget, and regional elections in November in Catalonia. The article suggests that Zapatero's poor performance as rotating EU President damaged his image - opinion polls put him 10 percent behind the opposition candidate. Italy on verge of Parliamentary crisis Il Sole 24 Ore reports that Italy is on the verge of Parliamentary crisis because of the rift between Prime Minister Silvio Berlusconi and his main ally Gianfranco Fini, who is speaker of the lower house of Italian Parliament and co-founder of Berlusconi's People of Liberty party. Economist: Charlemagne Il Sole 24 Ore Le Monde Guardian Times An article in the Guardian looks at David Cameron's recent foreign tour and his direct and "outspoken" approach in foreign affairs. An unnamed senior government figure is quoted as saying: "He has also not shied away from speaking his mind in the EU on financial services and the importance of not harming the City of London with undue new regulations. This approach is paying dividends." AFP reports that the European Commission has refused to intervene in the French government's decision to repatriate Roma people who have committed public-order offenses, and to dismantle all illegal camps. "EU rules on free movement of European citizens give member States the right to control their territory and fight against crime", said a spokesperson for EU Commissioner for Justice Viviane Reding. The WSJ notes that German unemployment is nearing the level it was at before the economic crisis in 2008. Le Figaro reports that the Dutch Liberal party (VVD) is intensifying negotiations with far-right leader Geert Wilders over the composition of the next coalition government. Rating agency Moody's has lowered Iceland's credit rating to Baa3, only one grade higher than junk status. Svenska Dagbladet Dagens Nyheter The EU approved new legislation on Thursday to accelerate the creation of the 'single European sky', which aims to improve the coordination of air transport. The legislation will enter into force in 2012, reports El Mundo. UK PA reports that David Cameron has written a letter to Conservative MPs outlining the achievements of the coalition and explaining how he is delivering for the Conservative Party. Among the Government's achievements he highlighted were a referendum, guaranteed by law, on any future European Treaty that shifts powers from Britain to the EU. No link
Friday 30 July 2010
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