Thursday, 16 August 2012

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New on the Open Europe Blog

Lega Nord steps anti-euro rhetoric up by another notch
Open Europe Blog

The Italian lira is back (for a weekend)
Open Europe Blog

Will anything come out of Germany's summer of discontent?
Open Europe Blog


Daily Press Summary

Germany sticks to its guns on Greece but welcomes all ideas to be put on the table;
Mail: Greek exit from the eurozone could cost the UK economy £105bn
The German government yesterday reiterated its calls for Greece to stick to its commitments under the bailout programme. However, German government spokesman Steffen Seibert did stress that “everything can be put on the table” at next week’s meeting between German Chancellor Angela Merkel and Greek Prime Minister Antonis Samaras, and did not rule out a potential delay in fiscal consolidation in Greece. Seibert also stressed that no decision will be made until the next EU/ECB/IMF troika report is released – which may not be until late September or early October. In an interview with Der Spiegel Online, German Foreign Minister Guido Westerwelle said, “The time lost during the [two] Greek electoral campaigns will have to be taken into account.” Spiegel economics editor Stefan Kaiser argues that “only bankruptcy can help [Greece] now” as it is the only way for the country to get a fresh start.

The Mail reports that, according to unnamed senior government sources citing internal Treasury calculations, a Greek exit from the eurozone could see UK GDP fall by £105bn (around 7%). The article notes that this estimate is much higher than estimates by financial firms, with much of the cost stemming from a fall in UK exports to the eurozone and collapses of European banks causing losses for UK banks.
FT FT: Pagoulatos Il Sole 24 Ore Corriere della Sera Kathimerini Mail Repubblica Spiegel Online: Westerwelle Manager Magazin La Stampa Telegraph FTD Der Spiegel: Kaiser Boersen-Zeitung leaderWAZ: Gerd Heidecke Sabah: Stelyo Berberakis

El Confidencial reports that, according to Spanish government sources, Spain is negotiating the possibility of using part of its €100bn bank bailout package to buy Spanish bonds and reduce borrowing costs. The Spanish Economy Ministry reportedly estimates that the banking sector will not need more than €60bn – leaving around €40bn available.
El Confidencial FT FT: Editorial Bloomberg

German Economy Minister: “The euro should not fail because of Greece”
Writing in today’s FAZ, German Economy Minister and FDP leader Philipp Rösler rules out debt mutualisation but also the reversal of European integration, arguing that “the only sustainable path [for the eurozone] in the future is: a solid and competitive union with clear rules. This means: on top of a diverging monetary community a true community of values with a common economic constitution should be added…[with] a clear commitment to a solid financial political framework and growth which is based on one’s own efforts.” Rösler also warns that Greece must decide whether it is willing to implement the necessary reforms, adding, “[If this appears not to be the case], then no further financial aid can help. The euro should not fail because of Greece.”
FAZ: Rösler

CDU MP: Germany should have veto rights in the ECB
Handelsblatt notes that several German politicians are calling for radical reform of the ECB. Angela Merkel’s CDU budget expert, Klaus-Peter Willsch, is quoted as saying that “Germany, as the main creditor, must have a right to veto any decision.” Separately, German Economy Minister Philipp Rösler told Reuters, “[ECB President Mario] Draghi has himself emphasised that [ECB] bond purchases can never replace structural reforms and budget discipline. We take him at his word. That is the right road to follow.”
Handelsblatt: Willsch EUobserver Expansión Reuters: Rösler La Tribune

In an interview with La Repubblica, Lega Nord Secretary General Roberto Maroni said that his party wants to propose holding a non-binding referendum on the euro in Italy on the same day as next year’s general elections. Open Europe’s blog post commenting on Maroni’s remarks featured on the Telegraph and Guardian’s live blogs.
Open Europe blog Repubblica: Maroni Telegraph: Live blog Guardian: Live blog

BNR reports that Emile Roemer, the leader of the Dutch Socialist Party – currently the most popular party in the Netherlands according to opinion polls – has warned that, if in government, he will refuse to pay any fines for breaching EU budget rules.
BNR

Hungary’s Foreign Affairs Ministry will launch an advertisement campaign targeted at households to promote the European Union, under the theme “Costs of non-Europe,” according to the WSJ. The campaign will be financed from EU resources and has a budget of €125,000.
WSJ


French academics Mathieu Laine and Frédéric Sautet argue in Le Figaro that a federal Europe is not the solution to the eurozone crisis.
Le Figaro: Laine and Sautet

A study by PWC estimates that the level of non-performing loans held on the books of European banks rose by 10% last year, topping €1 trillion – meaning that they have more than doubled since 2008. Over a third of the non-performing loans identified by PWC are located in Spain, Italy and Ireland.
PWC report WSJ EUobserver

Noëlle Lenoir, an honorary member of the French Constitutional Council, writes in Le Figaro that “it remains to be seen” whether the ECJ will consider France’s transposition of the balanced budget rule laid down in the fiscal treaty as “sufficient”. The Constitutional Council last week established that France will not have to change its constitution to transpose the rule. 
Le Figaro: Lenoir

In an interview with the Leipziger Volkszeitung, CDU MP Josef Schlarmann criticises German Chancellor Angela Merkel for prohibiting discussion within the CDU on alternative policies for dealing with difficult problems such as the eurozone crisis.
LVZ: Schlarmann Independent

Reuters notes that drought-stricken crops and record-high grain prices have strengthened critics of the EU’s biofuel industry.
Reuters Euractiv

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