Tuesday, 14 August 2012


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The Italian Lira is back (for a weekend)
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Will anything come of Germany's summer of discontent?
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Given political will, EU reform could become an unlikely area of consensus for a revamped Coalition 2.0
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Daily Press Summary

German growth exceeds expectations as Greece contracts further
New growth figures released today show that Germany’s GDP grew by 0.3% in the second quarter of the year while the French economy remained stagnant at 0%, although both exceeded expectations. Meanwhile, Greek GDP shrank at an annual rate of 6.2% in the second quarter; a slightly smaller drop than in the first quarter. Greece managed to auction €4bn in short term debt this morning, although with slightly lower demand and higher borrowing costs. Open Europe’s Raoul Ruparel is quoted by theTelegraph arguing that replacing long term debt with short term debt is not sustainable for Greece and will contribute to increased borrowing costs.
FT CityAM WSJ Times Telegraph El Mundo Kathimerini Kathimerini 2 CityAM 2 WSJ 2 Süddeutsche FAZWelt El Mundo Expansión Repubblica Le Monde Liberation FT 2 Les Echos La Tribune FT 3 European Voice

New legal challenge risks delaying German Constitutional Court verdict on ESM and fiscal treaty
A group of plaintiffs led by German professor Markus Kerber – who has previously challenged the eurozone bailouts and the ECB’s bond buying programme – yesterday lodged a new legal challenge at the German Constitutional Court demanding that the Court delay its ruling on the compatibility of the ESM and fiscal treaty with German Law due on 12 September. The group argue that the Court has to wait until the European Court of Justice first rules on whether the ESM breaches EU law – a case referred to it by the Irish Supreme Court following a lawsuit brought by independent Irish MP Thomas Pringle. However, a spokeswoman for the Court today said “There is currently no indication that the date of the verdict will be delayed”.
FT EUobserver Reuters El País La Tribune Expansión Il Sole 24 Ore La Stampa Corriere de la SeraRepubblica AFP Welt

An Angus Reid poll on the UK’s EU membership has found that 46% of respondents would vote to leave, 29% would vote to stay, with the remainder undecided.
Angus Reid poll

According to Spanish Economy Ministry sources quoted by La Vanguardia, Spain could make a formal request for the early disbursement of €30bn from its bank rescue package as early as Thursday or Friday. The money will be used to help Bankia and other nationalised savings banks.
La Vanguardia

Italian news agency AGI reports that the Lega Nord party has organised a rally for next weekend, at which the Italian lira will be used as the official currency. Italian Prime Minister Mario Monti has been officially invited to attend.
AGI Repubblica

La Repubblica reports that, according to new figures published by the Italian Central Bank, Italy’s public debt reached a record €1,972bn in June. Meanwhile, Italy sold €8bn of one-year bills yesterday, with slightly higher interest rates but also stronger demand than in the previous auction.
AGI Mail Euractiv Repubblica Corriere della Sera FT

Austrian billionaire Frank Stronach has said that he will set up a new political party to run in the 2013 Austrian elections. The party’s main goal will be fighting against the euro in favour of a return to national currencies, reports German magazine Focus.
Focus Krone

Open Europe Director Mats Persson is quoted by Polish daily Rzeczpospolita as saying that the risk of the UK leaving the EU would increase drastically if the EU were to push ahead with further integration, for example an EU-wide banking union which would hit the City disproportionately hard. Mats argues that for the UK to remain in the EU, renegotiated membership terms are essential.
Rzeczpospolita

The Mail reports that senior Conservative MPs have told David Cameron that he should replace ‘moderate’ Europe Minister David Lidington with a more ‘eurosceptic’ politician. Those cited as possible replacements include senior whip and former shadow Europe minister Mark Francois, who led the party’s opposition to the Lisbon Treaty in the House of Commons, and the creation of the ECR group in the European Parliament.
Mail Independent Open Europe blog Open Europe blog Open Europe blog

Following a fatal attack on an Iraqi immigrant, Antonis Roupakiotis, the Greek Minister for Justice, Transparency and Human Rights warned that “The rise in hate attacks against foreigners is starting to take a dangerous direction”, reports Kathimerini.
Kathimerini

The WSJ reports that, according to a TNS NIPO poll, anti-austerity parties could secure over a third of the seats in the Dutch parliament at next month’s elections, with the Socialist Party emerging as the front-runner. However, given the fragmented nature of Dutch politics, it is still possible that a variety of governing coalitions could be formed, including one led by the current Prime Minister Mark Rutte.
WSJ

EUobserver reports that Iceland’s Left Green party wants to reconsider its coalition deal with the Social Democratic Alliance on the country’s EU membership bid, in light of the worsening eurozone crisis.
EUobserver

The Express reports that the European Parliament’s ­Employment and Social ­Affairs Committee has drafted plans obliging firms considering redundancies to monitor the “psycho-social health” of their staff.
Express


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