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Europe
Portugal downgraded again as markets accept that a bailout is inevitable;
Trichet: Eurozone crisis may make a “move toward a political federation” necessary
Moody’s cut Portugal’s credit rating today in the latest of a series of downgrades which have hit the country over the past month. The agency stated that it expected the new Portuguese government to seek external aid “as a matter of urgency”. The Portuguese cost of borrowing hit 9.91% yesterday, meaning that it is now higher than Ireland’s when it requested a bailout. The FT reports that nearly all investors and Portuguese commentators see a bailout as inevitable, except former Prime Minister Jose Socrates who maintains his opposition to a bailout.
Speaking in Brussels last night, ECB President Jean-Claude Trichet warned eurozone leaders that current plans for economic governance do not go far enough, saying that, “Either we prove that we are able to find the new strong reinforced governance concept, which will fit with a constellation of sovereign states and permit the European Union to face up with the new globalised world. Or, we do not convincingly succeed into this direction, and then a new jump in the institutional framework of Europe toward a political federation will appear necessary.”
EUobserver notes that the Greek government’s next proposed round of austerity, aimed at raising €25bn, will focus on tax increases rather than spending cuts.
A report by the Economist’s Intelligence Unit has concluded that while the eurozone will most likely muddle through the current crisis, there is a 15% probability that political pressure from disgruntled voters in struggling member states will force them to abandon the shared currency, which would result in the "effective end of the euro area”.
FT FT 2 Le Monde BBC SVD Público FT 3 FT 4 FT:Rogoff Diário Económico i Informação TVI BBC: Mason's blog City AM FT Editorial WSJ FT: Brussels blog Trichet's speech WSJ: Source blog WSJ: Hannon EUobserver Irish Times Irish Times 2 Irish Times 3 Irish Times: Lane Le Monde: Wolf Les Echos: Vittori Telegraph Sueddeutsche: Sinn FTD: Auer
The House of Lords EU Committee has published its report on the future of the EU budget post-2013, which argues that the overall size of the EU budget “should not increase in real terms.” The report recommends that the EU’s structural funds should be focused on poorer EU states. It cites Open Europe’s calculations that repatriating EU regional spending would have saved the UK €3bn net, over the current EU budget period.
House of Lords report
UK pressure furthers scope of EU airline passenger data sharing
EUobserver notes that MEPs are likely to clash with EU member states as the UK has reportedly convinced some 17 governments to include intra-EU flights within the scope of a draft EU bill regarding the use of air travellers’ personal data in the search for suspected terrorists. Under the UK’s proposal, EU governments would be allowed to choose themselves if and what routes – both intra and extra-EU – they want to collect data on, based on risk assessments from their intelligence services.
EUobserver
European insurers warn of “dire consequences” of Solvency II
The Telegraph reports that the four major associations of European insurers have sent an open letter to EU Internal Market Commissioner Michel Barnier, warning that the EU’s new Solvency II rules for the insurance sector – due to enter into force in 2013 – are “excessively conservative and prescriptive” and “risk driving insurers out of their long-term business.” The letter reads: “Stakes are high and time is running out: a failure to properly implement this reform would have dire consequences for an industry that represents a significant component of the EU economy, capital markets, old age savings and jobs”.
Telegraph FT: Letters City AM WSJ
European Commission “ready to urge countries” to take over immigration burden from Italy
European Justice and Home Affairs Commissioner Cecilia Malmström has suggested that the immigrants currently arriving in Italy could be distributed over different European countries, according to Elsevier. El Mundo quotes Malmström saying that "in case of a mass exodus of displaced persons, the European Commission is ready to urge the EU countries to receive them on a temporary basis.” Temporary hosting of migrants, for a maximum period of one year, may be possible as a result of a 2001 directive specifically designed for immigrants from countries with a humanitarian emergency.
Elsevier El Mundo
Polish TV exposes more MEPs “signing in and sodding off”
An expose by Polish TV station TVN24 has revealed that a number of cross party Polish MEPs have been attending the Polish Parliament’s committee on European Union affairs as guests, while leaving a few minutes after signing in, which is necessary to collect a “subsistence allowance” of €304 provided by the European Parliament to cover their costs. Meanwhile, Belgian Radio 1 reports that the Belgian federal prosecutor will look into whether the MEPs who were revealed to accept "cash for laws" by the Sunday Times have committed any criminal offence.
TVN24Gazeta Wyborcza Gazeta Prawna
EUobserver reports that, according to the first EU Space Strategy launched yesterday by EU Industry Commissioner Antonio Tajani, the EU wants to strengthen its cooperation with China in space technology and "share open frequencies in satellite navigation" as China is currently developing its own rival satellite system.
EUobserver RP online Sueddeutsche FAZ
European steel industry threatens to sue EU over emission permits
Bloomberg reports that the association of European steel producers, Eurofer, has said it will sue the EU over the allocation of free carbon-dioxide permits in the emissions trading system after 2012. Under the new regulation, the EU, which has given away the majority of emissions permits since it started the program, will sell the majority of them in the next phase from 2013.
Bloomberg
The European Council has adopted a decision to approve an EU “military operation in support of humanitarian assistance operations in response to the crisis situation in Libya”. The so called ’EUFOR Libya’ operation shall be enacted upon request from the UN.
European Council press release
The European Commission has pledged €10m in aid to support Japanese people made homeless by last month’s earthquake and tsunami.
European Voice Politiken
A decision is expected today on the new leader of the German FDP party, while Guido Westerwelle has also been asked to step down as Foreign Minister. Green Party leader Claudia Roth was quoted in DieWelt saying “only with Westerwelle withdrawal, can German Foreign Policy be given more weight in the EU, in the near East and Asia”.
FT Bild Handelsblatt FAZ Welt Hamburger Abendblatt
The EU has warned of humanitarian crisis in the Ivory Coast, while Southern European states are becoming increasingly concerned over the rise in refugees fleeing the conflict.
EUobserver EurActiv France Focus Radio Free Europe
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