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Barnier: EU supervisors "are going to look at every product"
In an interview with the Telegraph, EU Commissioner for Internal Market Michel Barnier commented on the new architecture for financial supervision agreed by EU finance ministers last Tuesday. He said that "the EU authorities are going to look at every product. ESMA can restrict leverage, or in exceptional circumstances even ban a product altogether". Mr. Barnier also said that "the City is the foremost financial centre of Europe, and a pillar of our force. I want it to continue to be so. But it is in the City's own interest that it should be well regulated".
The article quotes UK former Europe Minister David Heathcoat-Amory warning that "this is irreversible. This is what the EU calls an 'occupied field': it never relinquishes territory once taken". Open Europe's Director Mats Persson is also cited saying that the EU supervisors will inevitably accrue more powers with the introduction of new EU laws. Mats also argued that introducing a further layer of supervision at the EU level risks creating confusion, replicating the failures of the Labour Government's tripartite system.
Meanwhile, an article in European Voice looks at the Commission's new proposals on regulation of derivatives trading to be unveiled on 15 September, noting: "Banks and other major market players are concerned that some eurozone governments might try to use the regulation as an opportunity to require that the clearing of euro-denominated OTC [over-the-counter] derivatives take place within the eurozone [...] At present, most clearing of derivatives takes place in London, through the clearing house ICE Clear Europe. Many in the sector fear that a forced move into the eurozone would drive up clearing costs, making derivatives trading less attractive".
Telegraph Telegraph 2 La Tribune European Voice
French Budget Minister: I tried to persuade the British to give up the rebate but CAP is "not negotiable"
AFP reports that French Budget Minister François Baroin was yesterday in London to discuss the upcoming negotiations of the EU budget with, among others, Chief Secretary to the Treasury Danny Alexander. Speaking after the talks, Baroin admitted that he did not manage to persuade his British counterparts to re-negotiate the UK rebate. "I have made many efforts and put on the table several arguments. But I have understood that the Britons had no intention of changing their stance", he said, adding that during the talks he had also made clear that French President Nicolas Sarkozy's position on the Common Agricultural Policy "is not negotiable". He concluded, "at least [...] these talks have shown the determination of both our countries to defend the respective positions". France and the UK have agreed to limit the increase to the 2011 EU budget to 2.9 percent from the last year.
Meanwhile, EU Budget Commissioner Janusz Lewandowski has said that he will present a "neutral report" on possible new sources of financing for the EU budget at the beginning of October. However, he refused to reveal if the study would include an EU tax among the considered options.
The Times reports that an inquest is being held into the death of a patient in a hospital which left one junior doctor in charge of 100 patients. The inquest was told yesterday that staffing rotas were under review after increased pressure brought about by the introduction of the European Working Time Directive (EWTD).
European Parliament: France's "expulsion" of the Roma "violates EU law"
The European Parliament (EP) yesterday said that France's "expulsion" of the Roma people "violates EU law" as it is contrary to EU Directive on the free movement of people and the Charter of Fundamental Rights. The EP has demanded that "France and other Member States must halt expulsions of Roma immediately", with the adoption of a resolution with 337 votes to 245. The resolution also directs strong criticism towards the European Commission stating that the MEPs "deeply deplore the late and limited response by the Commission".
Le Parisien reports that French Immigration Minister Eric Besson has responded saying: "the European Parliament has gone beyond its prerogatives and we obviously don't have to accept a political diktat...France is both meticulously applying EU law and scrupulously respecting the French republican law ".
In an interview with Le Monde, France's EU Affairs Minister Pierre Lellouche argues "The European Parliament, with its demand to Paris and the other states of suspending the process of repatriation, discredited the Lisbon treaty, which nonetheless gave it a lot of power in co-decision". Lellouche also indicated that France may oppose Romania's entry into the Schengen area agreements unless it launches a "plan of urgent action for the integration of the Roma community".
Meanwhile, Dutch socialist MEP Dennis de Jong notes that "a lot of the European project money meant for Roma integration projects, is lost...often there is corruption", reports NOS.
NOS EuroParl Guardian El Pais El Pais 2 Telegraph Euractiv.fr ANSA BBC EurActiv EUobserver European Voice Le Parisien AFP Le Monde
Trichet wants voting rights suspended for eurozone's rule-breakers;
"I don't think that the euro area was close to disaster at all - seen from the inside"
In an interview with the FT, ECB President Jean-Claude Trichet has added his voice to those calling for sanctions to enforce the eurozone's budget rules, saying he wants to see a "quantum leap" forward in eurozone governance. Mr Trichet said that the "temporary suspension of voting rights is something that should be explored".
Mr Trichet said he wants sanctions imposed "quasi-automatically" - i.e. judged according to objective criteria - on members that flout fiscal rules in future. This would require EU treaty change. Mr Trichet also said, "I don't think that the euro area was close to disaster at all - seen from the inside." He added, "I know how Europe functions...Seen from the outside, I would say that it's always difficult for external observers to judge and analyse correctly the capacity of Europe to face up to exceptional difficulties."
Meanwhile, an article in Handelsblatt with the headline "state debt bomb", looks at how struggling eurozone countries, such as Ireland and Portugal, are failing to make sufficient savings in their public finances, raising concerns in Brussels that the debt crisis is deteriorating.
Handelsblatt FT FT: Interview Irish Times: O'Brien AGI Il sole 24 Ore Handeslblatt Irish Independent WSJ Reuters: Saft OE blog
Commission could use "enhanced cooperation" to pursue common corporate tax base
The Irish Times reports that EU Taxation Commissioner Algirdas Semeta may invoke the EU's so-called "enhanced co-operation" procedure, under which a group of countries can introduce common EU rules that apply only to them, in order to pursue proposals for a common consolidated corporate tax base (CCCTB). The Irish government has warned that this could put non-participants at a disadvantage and undermine tax competition in Europe.
EEAS top staff and budget to be confirmed next week
Catherine Ashton, head of the EU's new foreign service, the European External Action Service (EEAS), is due to announce in the next few days the first tranche of EEAS senior personnel and EU diplomats. European Voice speculates on the top four positions noting that "Pierre Vimont, France's ambassador to the United States, is pencilled in for the post of secretary-general. Germany's Helga Schmid, who heads the policy unit in the secretariat of the Council of Ministers, and Mikolaj Dowgielewicz, Poland's minister for Europe, are lined up to be his deputies. Ireland's David O'Sullivan, currently the Commission's director-general for trade and before that the Commission's secretary-general, is a strong contender to oversee the service's administration." The proposed EEAS budget will be unveiled on Wednesday.
Divisions within German's ruling coalition undermine influence at EU level
Die Welt reports that the struggle for influence within the German coalition government and among the different ministries are undermining Germany's ability to influence EU policy. The article notes that Edmund Duckwitz who, on Merkel's request, left his post as German ambassador to NATO to become Germany's first man in Brussels only to be replaced by foreign minister Westerwelle shortly after taking up his post. The report further states that German diplomats are often unable to engage in important negotiations because they lack clear directions due to miscommunication between Brussels and Berlin.
The WSJ reports that 47 percent of Poles oppose Poland's possible adoption of the euro, according to a poll conducted by Poland's Finance Ministry. This is up 4 percent from December 2009.
The Telegraph reports that the UK's Food Standards Agency has called for immediate measures to stop the importing of cloned meat. However, this conflicts with a ruling made by the European Commission authorising the sale of such meat.
The IHT reports that the US has stepped up pressure to prevent the EU from charging foreign airlines for greenhouse gas emissions when they take off and land in Europe.
The FT reports that Serbia has presented a watered-down resolution on Kosovo to the UN general assembly to avoid jeopardising its hopes for European Union membership.
Belgium wants to use its EU Presidency to underline the key societal role played by companion animals like dogs and cats, Belgian Deputy Prime Minister for Health and Social Affairs Laurette Onkelinx announced yesterday, expressing support for the development of an EU-wide animal welfare strategy, reports EurActiv.
Handelsblatt reports that France will increase its VAT for certain products after pressure from the EU.
Handelsblatt Le Figaro
NOS TV reports on a BBC Hard Talk interview conducted with Belgian caretaker PM Yves Leterme. It notes that Leterme was "under British fire". He reportedly struggled to answer if he thought the EU's richer regions should support the poorer ones.
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