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Second Greek bail-out could reach €120bn;
Barroso: Greek crisis could put Ireland’s return to the markets in 2012 at risk

Reuters reports that, according to several eurozone sources, the second bail-out package for Greece could reach €120bn. The EU and the IMF would contribute €60bn, with €30bn coming from the sale of Greek government assets and €30bn provided through an extension of Greek debt held by private investors. However, FAZ quotes eurozone sources saying EU finance ministers may not be able to reach a decision on the second Greek bail-out when they meet in Brussels on 20 June.

Bild notes that a battle is going on within the German ruling coalition, as a growing number of MPs are questioning if Germany should take part in a second Greek bail-out. However, Reuters reports that the German Bundestag has today endorsed a non-binding resolution backing additional aid for Greece, which was presented by MPs from German Chancellor Angela Merkel’s CDU, the CSU and the FDP. Handelsblatt cites a study by the Institut für Weltwirtschaft claiming that the eurozone debt crisis has torpedoed the German government’s plans to reduce Germany’s public debt, due to the cost of the eurozone bail-outs.

Meanwhile, an article in the Irish Times reports that European Commission President José Manuel Barroso has said that the Greek crisis presents “risks” to Ireland’s return to the debt markets next year, as foreseen in the Irish bail-out programme. Il Sole 24 Ore reports that Italian Prime Minister Silvio Berlusconi and Italian Economy Minister Giulio Tremonti have reached an agreement on a new €45bn austerity plan, with €40bn cuts envisaged for 2013-2014.

Trichet also signalled that the ECB could raise interest rates next month. Meanwhile, Le Monde reports that yesterday the Greek government signed off on a new austerity package envisaging cuts worth €28.4bn until 2015, of which €6.4bn is to be finalised by the end of the year. A vote in the Greek parliament is expected by the end of June.
Irish Times EUobserver EUobserver 2 IHT Irish Times FTD FTD 2 Zeit Times WSJ WSJ 2 WSJ 3 Irish IndependentIrish Independent 2 BBC La Tribune Les Echos Les Echos 2 Les Echos 3 Le Monde Il Sole 24 Ore Guardian FT FT 2FT 3 FT 4 Kathimerini El PaísReuters Handelsblatt FTD Bild FAZ Economist: Leader Economist: Charlemagne WSJ: Mattich Paul Krugman Icelandic Review Irish Economy Blog Irish Times Expresso: Raposo WSJ: Nixon WSJ: Forelle

In an article looking at the financial risk that the ECB has taken on during the eurozone crisis, the Economistcites Open Europe’s briefing on the ECB’s exposure published this week. The article quotes Open Europe warning of the ECB’s “potentially huge” risk to taxpayers “buried in the ECB’s books”. The report also features on Slovakian financial daily HNonline.
Open Europe research Open Europe press release Economist HNonline.sk

FAZ reports that the German Constitutional Court will start its proceedings on the lawsuit filed by a group of five German economists challenging the legality of the eurozone bail-outs on 5 July. The Court did not provide any information about when the verdict may be announced, reports Reuters.
FAZ Reuters Les Echos

The French Republic’s Court of Justice will decide today whether to investigate allegations of authority abuse against Christine Lagarde, potentially stopping her from becoming head of the IMF.
Le Nouvel Observateur Le Figaro

In response to Tony’s Blair's calls for an elected EU president, UK Foreign Secretary William Hague noted that "the EU is not a country" and elected presidents were "for countries".
Guardian: Abbott

Market fears over Spanish debt hits Santander bond auction

The front page of the WSJ reports that a €1bn bond deal by Spain’s Banco Santander last week found buyers for only about half of the amount. The article notes that the bond was backed by a pool of loans that the bank had made to regional and local governments across Spain, suggesting that the deal highlights how wary investors are when it comes to Spain’s local debt. Meanwhile, Spain’s autonomous communities’ debt has doubled to €115bn since 2008, reports theFT.
El Pais 2 Expansion FT El Pais Bloomberg WSJ

Croatia's bid to become the 28th member of the EU is set to receive a major boost today, with the European Commission expected to announce that accession negotiations can be completed in the coming weeks.
WSJ EurActiv France Standard

Wirtschaftswoche reports on a study by Copenhagen Economics that claims that the EU’s GDP would grow by 4% if the internal market in internet trading were implemented.
Wiwo

Webwereld.nl reports that financing for the EU's surveillance project Indect has been suspended, following a request for clarification by MEPs on whether the purpose of the project is in accordance with fundamental rights. The project receives €11m in EU subsidies.
Webwereld.nl

The IHT reports that France could be fined up to $24.6m if it does not adjust agricultural and urbanisation practises to protect wild European hamsters, ruled the European Court of Justice yesterday.
IHT EurActiv

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