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UK may be liable for between €900m - €3.6bn under a second €60bn bailout of Greece
The Mail reports that, according to comments by Greek officials to Dow Jones Newswires, Greece could request another bailout worth up to €60bn. The article cites Open Europe’s calculations that, under a €60bn bailout, the UK would be liable for between €900m - €3.6bn, due to its commitments under the IMF and the European Financial Stability Mechanism (EFSM). Chancellor George Osborne suggested that the UK could be a “reluctant partner” in any bailout. Open Europe’s Raoul Ruparel is quoted in the Mail saying, “The original bailout hasn’t worked and throwing good money after bad sends the wrong signals, since Greece has failed to meet the existing rescue conditions…The line needs to be drawn somewhere.”
Handelsblatt reports that politicians from the German coalition government are creating a front against a further bailout for Greece. FDP MP Frank Schäffler is quoted saying, "new aid won't have a majority in Parliament, it is wrong, because it doesn't solve Greece's problems."
Writing on Dutch site De Dagelijkse Standaard, Open Europe's Pieter Cleppe reveals that the Netherlands could be liable for €3.5bn under the proposed Portuguese bailout, arguing "how is it possible that the Dutch government keeps on writing blank cheques without any guarantee that things will improve? How responsible is it towards the citizens of Southern Europe to burden their governments with ever more debt, without the prospect of it all being paid back?" Open Europe's figure was also reported by Elsevier, while Belgian daily De Morgen cites Open Europe's calculation that Belgium could be liable for €2.56bn in the Portuguese bailout.
Bloomberg reports that the European Commission has announced that the interest rate on the Portuguese bailout will be between 5.5% - 6%, comparable to the rate currently paid by Ireland. According to Yle, Finnish parliamentary negotiations over the Portuguese bailout have been delayed until Friday. Differences persist between the parties with the True Finns still against the bailout, while the Social Democrats continue to argue for greater private sector involvement through a debt restructuring. Bloomberg reports that it is unclear whether an agreement will be reached in time for Monday’s Ecofin meeting, but if it isn’t, then Finland could request that the Portuguese bailout include some burden sharing for private investors in exchange for supporting the rest of the package.
The Irish Times reports that EU Economic and Monetary Affairs Commissioner Olli Rehn has said that he expects a reduction in the interest rate on Ireland’s bailout loan to be agreed “shortly”. However, the FT notes that France is set to veto any proposed reduction unless Ireland agrees to raise its 12.5% corporate tax rate.
Mail Dagelijkse Standaard: Cleppe Elsevier 1 Elsevier 2 FT FT 2 FT 3 WSJ 2 Times Times 2 Telegraph Express WSJ Dagens Nyheter BBC EurActiv Irish Times BBC: Today El País Handelsblatt Le Figaro: Hall Le Figaro: Lagarde Reuters Reuters 2 Bild FT 5 Irish Times Irish Times Telegraph Yle Yle2 Bloomberg Bloomberg 2 FT FT 2 European Voice EUobserver
UK opts in to EU data sharing law on air passengers’ details
Immigration Minister Damian Green last night confirmed that the UK has opted in to negotiations on the EU’s draft directive designed to collect and share air passengers’ personal details with authorities across Europe. Once approved, the directive on so-called “passenger name records” would mean data including names, addresses, credit card details, travel partners, and what a passenger ate will be held for five years and can be handed over to EU police forces. The draft law applies to flights in and out of Europe but Britain wants the powers to apply to flights within Europe as well.
Open Europe Research Director Stephen Booth is quoted in the Telegraph and the Mail saying that, “Despite their tough rhetoric in opposition, Conservative ministers have handed over crime and justice powers to Brussels at an alarming rate since they’ve come to office.” He added, “It is completely undemocratic that the Government can choose to hand over British citizens’ personal data to police forces all across Europe without so much as a vote in Parliament.”
Mail Telegraph Open Europe research
Die Zeit: A referendum on the euro may be the only way to regain citizens’ trust
An article in Die Zeit argues that although the economic problems of the euro are solvable, Europe’s citizens are rebelling against the common currency, and that potentially the only viable solution is “a European referendum on the future of the euro… It would be a risky proposition… but in a democracy, one cannot govern against the people”.
In the FT, Martin Wolf writes, “However unpopular restructuring might be, the alternative would be worse…If restructuring is ruled out…the bigger and the stronger [members] will finance and police the smaller and the weaker.” In the Times, Anatole Kaletsky argues, “The bailouts don’t work but they do allow the EU to build up centralised power at the expense of nation states.”
The Guardian argues, “Operation Muddle Through will continue – despite the trouble it causes the Greeks, despite the danger it poses to the rest of the eurozone and despite logic that argues to the contrary.”
FT: Wolf WSJ: Editorial Times: Kaletsky BBC: PestonBBC: Flanders Independent: McRae Mail: Alexander Guardian: Editorial Zeit Welt Leader
Gay couples should enjoy equal pension rights says EU court
Following a case brought by a retired German man, the European Court of Justice has ruled that members of same-sex civil partnerships should enjoy the same pension rights as heterosexual married couples, and refusal to do so could amount to sex discrimination. Although the ruling is non-binding, it sets an important precedent for other EU members that recognise civil partnerships or gay marriages.
BBC EUobserver
Berlin blocks Brussels’ proposals for consolidated corporate tax base
Handelsblatt reports that German Finance Minister Wolfgang Schäublehas rejected a proposal by EU Tax Commissioner Algirdas Semeta to harmonise the corporate tax bases across Europe, arguing that: “The Federal Government has no current plans to introduce a common consolidated corporate tax base… [it] holds for Germany the risk of significant, sustained tax revenue losses”.
Handelsblatt
El País reports that yesterday European Commission President José Manuel Barroso faced cross-party criticism in the European Parliament over the Commission’s decision to consider the temporary re-introduction of internal border checks within the Schengen area at the request of France and Italy.
El País EurActiv
The Guardian notes that Lib Dem leader Nick Clegg has voiced his support for a decision by the Home Secretary Theresa May not to participate in EU-wide ‘burden sharing’ of North African migrants and refugees who reached the EU’s Southern member states over the past weeks. The proposal will be discussed in the Council of Ministers on Thursday.
Guardian
MEPs decided yesterday to postpone their sign-off of the budget of the Council of Ministers and the UK-based European Police College and European Medicines Agency.
Straneuropa EP press release
Yle reports that, according to a recent TSN Gallup poll, only a quarter of Finnish people believe that the EU functions democratically while half are “distrustful” of democracy within the EU.
Yle
The Guardian reports that a poll commissioned by Policy Network and conducted in the UK, Sweden and Germany has revealed a “public lack of confidence in the ability of the European centre-left to govern for the mainstream”.
Guardian Comment is Free: Diamond and Cramme
According to EUobserver, Germany is unhappy with the cost of the EU’s French based international nuclear fusion project, ITER EU, calling it “exorbitant” and demanding greater transparency of the projects spending.
EUobserver
Reuters Italia reports that EU Foreign Minister Baroness Catherine Ashton has told MEPs that she intends to open an EU office in Benghazi in order to facilitate assistance to the National Transition Council (NTC), the representative body of Libyan rebels.
Reuters Italia
In an interview with Die Zeit, German Chancellor Angela Merkel has said that Italy’s Central Bank Governor Mario Draghi “is very close to our views on the culture of stability and sound economics. Germany could support his candidacy for the ECB Presidency.”
Zeit: Merkel
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Déjà vu: One year on from the first Greek bailout not much has changed
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