Open Europe is holding an event in conjunction with Policy Exchange in London on Monday 12 July from 2pm - 4pm, entitled "EU supervision and regulation in the securities markets: Will one size fit all?"Open Europe
Speaking at the event will be: Salvatore Gnoni, European Commission; Kay Swinburne MEP; and William Underhill, Slaughter & May - Chairman of the City of London Law Society's Company Law Committee.
The event will be chaired by Open Europe Director Mats Persson.
Europe
EU's bank stress tests give the impression there is 'something to hide';
Simon Nixon: "What if foreign investors have simply lost confidence in Europe itself?"
The WSJ notes that the continued lack of detail surrounding the EU's planned stress tests on the banking sector are causing concern among investors that they will not be rigorous enough. "It lacks a bit of transparency," said Stefan Kolek, a Munich-based credit strategist at UniCredit. "The first impression is you have something to hide", he added. Willem Buiter, Citigroup's chief economist and a former Bank of England policy maker, added, "Any stress tests that do not look at the possibility of multiple sovereign-debt restructurings, with haircuts for creditors, aren't stress tests."
A leader in the FT argues: "The European approach to the financial crisis has, too often, been to think that everything would work out for the best if only troublesome investors would trust the authorities. Regrettably this thinking has informed the approach taken to stress-testing banks."
A leader in FT Deutschland - under the headline "banal findings" - argues that "the question is how long investors will let themselves be treated as stupid. Because the investigation will hardly bring something to the light which isn't already known [...] The reason for this farce is obvious: European governments had to decide the publication of the results in order to calm down the markets [...] But in case something really disturbing would emerge about the situation of the banks, they don't have a plan. Furthermore, the tests are made up in such a way that no bank in the end will not pass them [...] The calming down effect might not last."
In the WSJ, Simon Nixon asks: "What if the problem now goes beyond simply mistrust of Europe's banks, or even the ability of individual sovereigns to meet their obligations? What if foreign investors have simply lost confidence in Europe itself?"
Meanwhile, the Telegraph notes that the IMF has called on the eurozone to make its €500bn (£420bn) rescue fund "fully operational" and the ECB to prepare for fresh bond purchases to offset budget cuts being carried out this year. The Fund also called on the EU to explain how it intends to shore up banks that fail stress tests.
WSJ WSJ: Nixon WSJ: Gros Telegraph Telegraph: Corrigan FT: Leader Irish Independent
IMF forecasts: Eurozone growth rate will be the world's lowest in 2010 and 2011;
Trichet: "One should not underestimate Europe"
Le Figaro reports that the IMF has reviewed upwards its forecasts on economic growth. According to the new estimates, the world economy would grow on average by 4.6 percent in 2010 and by 4.3 in 2011. However, the Eurozone will have the absolute lowest growth rates - only 1 percent in 2010 and 1.3 percent for the following year.
Nonetheless, ECB Chief Jean-Claude Trichet tried yesterday to play down speculations on the possibility of the Eurozone entering into a new recession. "We are in a situation where a number of facts and figures and data are not, I would say, confirming that we would have stagnation or a double-dip [recession]", he said at a news conference, adding: "I see perhaps a tendency [...] from outside to be excessively pessimistic [...] and I think that the figures that we have are not confirming this pessimism".
Meanwhile, the WSJ reports that Miroslav Singer - who has been recently appointed as Czech Central Bank Governor - said that for his country there is no point considering the adoption of the single currency at the moment, especially in the light of the uncertainty surrounding the future of the Eurozone. "I don't even have a clue how long it will take to solve the problems of the Eurozone [...] There are simply too many hypotheticals for me to speculate [on whether joining would help the Czech economy]", he argued.
Le Figaro WSJ Le Figaro Le Monde Les Echos Times FT Irish Independent EUobserver European Voice
Ambrose Evans-Pritchard: All eyes on the German Constitutional Court over Eurozone bailout case
On his Telegraph blog, Ambrose Evans-Pritchard looks in detail at the cases against the eurozone bailout currently being heard at the German Constitutional Court, arguing, "At some point the court will find itself forced to rule. It may well deem elements of the rescue to package to be unconstitutional - though not all of it - and order Berlin to go back to the drawing board. If that happens, you do not want to be left holding Club Med bonds or currencies".
Telegraph: Evans-Pritchard blog Open Europe blog
The Guardian reports that yesterday MEPs gave the green light to the outline of the European External Action Service (EEAS) - the new EU diplomatic corps.
Guardian EUobserver European Voice Le Monde EP Press Release
FTD: "EU lets insurers bleed"
The frontpage of FT Deutschland reports that "the EU lets insurers bleed". The article notes that the European Commission is planning a Europe-wide insolvency protection arrangement. The newspaper notes that it has seen a proposal by Commissioner for the Internal Market Michel Barnier which wants to force insurers to put aside 1.2 percent of paid contributions into an insurance scheme. This would cost German insurers around €2 billion in the next 10 years. The arragement would be decided in 2011. The Commission is due to present the proposals on Monday.
Charlemagne: More Europe used to mean more France, but not anymore
A leader in the Economist looks at what Europe could do to boost economic growth, and argues that "The single market remains half-built", citing protected telecoms sectors, a fragmented patent system and illiberal energy supply. It adds: "The barrier to reform has always been political, not economic. Jean-Claude Juncker, Prime Minister of Luxembourg, put it best in 2007: 'We all know what to do, but we don't know how to get re-elected once we have done it.'"
A separate article considers proposals for reform of eurozone governance, and cites senior EU officials saying that talk of sanctions is nonsense because France and Germany will never accept being fined or denied a vote.
The magazine's Charlemagne column looks at why French President Nicolas Sarkozy, and German Chancellor Angela Merkel disagree about the future of Europe, and argues: "The balance of power between the two countries has shifted. Germany and France are no longer shoulder-to-shoulder equals. This is particularly hard for France. Put simply, its Europe policy has long consisted of coming up with the ideas, and getting the eager-to-please Germans to pay for them. More Europe, in other words, has meant more France. But this equation may no longer hold."
Economist: Leader Economist: Briefing Economist: Charlemagne
Commission considers standardisation of asylum seekers' rights
Bild reports that the EU Commission is planning to standardise the rights of asylum seekers across all member states, including automatic welfare equality with local people and access to the labour market after 6 months. The German Parliamentary State Secretary in the Ministry of Interior, Ole Schröder, criticised the plan saying: "The Commission's plans for a common asylum law would lead to lengthy asylum processes, increased costs and have other knock-on effects. The federal government will fight in Brussels to ensure that our proven asylum system is not compromised". This comes as the German Federal Government has come under increasing pressure to introduce a stiffer immigration points tariff.
Bild FTD Die Presse Sueddeutsche Welt
Polish business portal Inwestycje.pl reports that European Commission wants to maintain the current minimum VAT rate at 15 percent for the next five years. The new Directive will enter into force on 1 January 2011.
In an interview with the FT Jean-Pierre Jouyet, former French Europe Minister and current Chairman of the French financial markets regulator, has said that the EU needs more transparency in the corporate bond market, which he describes as "almost ground zero in terms of information and regulation".
European Parliament ready to defend high levels of CAP spending
El Mundo reports that the European Parliament yesterday adopted a non-legislative resolution, calling for the CAP budget to be maintained at least at current levels after 2013, and for an EU funded top-up payment for farmers who reduce their carbon emissions and adopt methods that increase the level of CO2 stored in soil. MEPs also said the CAP's two pillars - direct payments to farmers and funding for rural development - should stay put, reports EU Observer. Agricultural spending currently makes up roughly 40 percent of the EU's €120 billion annual budget.
El Mundo GazetaWyborcza EUobserver
Le Figaro reports that yesterday EU Commissioner for Climate Action Connie Hedegaard said she is not keen on introducing a carbon tax at the EU borders. "I prefer leaving it in the toolbox", she said. The introduction of this tax is strongly supported by French President Nicolas Sarkozy and Italian Prime Minister Silvio Berlusconi.
According to a report published in the Hungarian weekly HVG, budgetary problems, a slow transition between governments and a general lack of transparency are hampering Hungary's preparations for its first ever EU Presidency, due to begin on 1 January 2011.
An article in the FT looks at EU accession negotiations for Iceland and suggests that the fishing rights issue may be "the most slippery of them all".
The FT reports that Turkish Foreign Minister Ahmet Davutoglu yesterday rejected concerns that Turkey was moving away from the West, saying: "Our integration process into the EU is the most strategic objective of Turkey. Nobody can blame Turkey for the delay in this process."
UK
The Sun reports that, during negotiations over who was to be appointed as EU Foreign Minister last year, Lord Mandelson rang President Sarkozy and "begged" for Sarkozy's support for his candidacy - but he failed to get the backing.
In the WSJ, Stephen Fidler notes that, despite a deeper downturn in the UK compared to Spain, the UK's flexible labour market avoided the severe unemployment currently experienced in Spain.
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