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Daily Press Summary SPD signals it could be willing to accept eurozone debt pooling In an interview with Berliner Zeitung, SPD Chairman Sigmar Gabriel announced that the SPD was prepared to change its eurozone policy by accepting collective debt liability in exchange for stricter budgetary oversight, claiming that the Merkel government’s current strategy – hitherto broadly supported by the SPD – had failed. Gabriel acknowledged that for such a move, the German constitution would need to be altered and put to the public in a referendum. Separately, Reuters reports that Austrian Chancellor Werner Faymann has said that in his view, German Chancellor Angela Merkel will ultimately give up her resistance to giving the ESM a banking licence. FAZ reports that CSU MP Peter Gauweiler – who has lodged one of the complaints against the ESM treaty currently under consideration by the country’s constitutional court – has indicated that he will broaden his complaint to include the possibility of ESM obtaining a banking licence. Berliner Zeitung FAZ: Habermas, Nida-Rümelin & Bofinger Süddeutsche Welt Irish Times Reuters FAZ Monti: Governments cannot be too tightly bound by national parliaments In an interview with Spiegel, Italian Prime Minister Mario Monti warned of the “psychological break-up of Europe”, saying that he was “very worried” about resentment spreading in the Italy and the Italian parliament about the EU, the euro and also Germany. Monti also warned that "If governments allow themselves to be completely bound by the decisions of their parliaments without maintaining some room for manoeuvre in international negotiations, then a break up of Europe will be more likely than closer integration." This comment was subsequently criticised by a number of German commentators and politicians, including the SPD’s deputy faction leader Joachim Poß, who argued that "the acceptance for the euro and its rescue are enforced and not weakened through the role of national parliaments". Spiegel Spiegel 2 City AM Sole 24 Ore Corriere della Sera Repubblica La Stampa EUobserver El Pais El Mundo Dominic Raab: UK has historic opportunity to renegotiate its relationship with Europe Dominic Raab MP wrote in the Sunday Telegraph, “The European kaleidoscope is in flux, and the inevitable changes to its political architecture will present a historic opportunity to renegotiate our relationship with Europe…Plans for repatriation of powers are already being considered. Options include social and employment policy, fisheries, structural funds to poorer regions, justice and home affairs. Yet the real question is what happens if Europe says ‘no’.” He went on to argue, “A referendum now would be a distraction. But British and European policy-makers need to read the direction of these shifting tectonic plates. The optimal way to maximise UK leverage and focus minds in Brussels would be to offer the public a referendum sandwich: the first providing a mandate for renegotiation, the second approving the terms of any renegotiated deal against the alternative of withdrawal. There are no risk-free options in such uncertain times. The best preparation for the coming European storm is to focus on those economic and political levers that Britain can control.” Sunday Telegraph: Raab Open Europe research: EU regional policy Open Europe research: CAP reformOpen Europe research: JHA Open Europe research: Social and employment policy Die Welt: ECB moved to keep Greece afloat until next tranche of bailout is disbursed; Bavarian Finance Minister: It’s time for Greece to “move out of mum’s house” and leave the euro Die Welt reported on Saturday that, during the latest ECB Governing Council meeting, the ECB agreed to rise the upper limit of short-term debt the Greek central bank can accept as collateral in exchange for emergency loans to Greek banks under the so-called Emergency Liquidity Assistance (ELA). The threshold has been increased from €3bn to €7bn – a move which should allow the Greek government to avoid default and repay a €3.2bn bond maturing on 20 August, held by the ECB itself. Meanwhile, the inspectors from the EU-IMF-ECB troika left Athens yesterday and will be returning in early September. IMF chief of mission Poul Thomsen said “good progress” has been made on the implementation of the adjustment programme. Greece’s coalition leaders will meet today and tomorrow to finalise the details of the new €11.5bn package of savings Greece is expected to make in 2013-14, reports Kathimerini. Separately, in an interview with Bild am Sonntag, Bavarian Finance Minister Markus Söder insisted that the time has come for Greece to “move out of mum’s house” and leave the eurozone. Welt Kathimerini Kathimerini 2 Kathimerini 3 City AM Irish Times FT  Spiegel Spanish PM: “I haven’t made any decision” on asking eurozone bailout funds to buy Spanish bonds; Spain pledges to make over €102bn savings until the end of 2014 In a significant shift from his previous declarations, Spanish Prime Minister Mariano Rajoy told the press that he had not “made any decision” on the possibility of asking the eurozone’s temporary bailout fund, the EFSF, to start buying Spanish bonds. Rajoy said he first wanted to know the details of the “non-standard” measures announced by ECB President Mario Draghi last week, and then do “what suits the general interest of the Spanish people.” Meanwhile, Spain submitted its revised adjustment plan to the European Commission, which envisages over €102bn of budget savings from now until the end of 2014. According to a source quoted by Spanish news agency EFE, eurozone finance ministers are to hold a meeting during the first week of September to discuss the situation in Spain and Greece. The online edition of German weekly Die Zeit and Austrian daily Die Presse cite Open Europe's recent briefing on Spain, which argues that the main concern with Spanish regions is the continuing damage to Spain's credibility caused by the central government not being able to rein in spending and exert political control over the country's regional administrations. Expansión FT Weekend FT Weekend 2 Saturday’s Independent Saturday’s Telegraph Saturday’s GuardianSaturday’s Times  Die Presse Zeit Online ABC Le Monde City AM Libération El País Expansión El País El Economista FT: Gardener The Times reports that the continuing eurozone crisis has compelled Royal Dutch Shell to withdraw some of its substantial cash reserves from European banks, intensifying fears of capital flight from the eurozone. Separately, the FT reports that in addition to reducing their net exposure to troubled eurozone countries, US banks have been working “behind the scenes” to ensure that if a country leaves the eurozone, they will not have to receive payments in its new devalued currency. Times FT John Hutton: EU’s Solvency II pension reforms would be “a disaster for Britain” Writing in the FT, former Labour Work and Pensions Secretary John Hutton argues that “the UK operates a highly effective regime for occupational pensions that has some of the best practice within the EU... These rules provide sufficient security for scheme members without the need for higher solvency requirements… Moving in the direction suggested by the [EU] commission would have major negative impacts on growth, jobs and ultimately competitiveness, for no discernible benefits of any kind to anyone... The system is not broken and does not need any more ‘fixing’. Brussels must think again. We have to change course before disaster strikes.” FT: Hutton Open Europe Research: EU Financial Regulation In an interview with French business daily Les Echos, Peter Mandelson said, “Indeed, the [UK] rejects the euro. But if, within the next five to ten years, the eurozone has put its house in order, the country may well reconsider its point of view. Pro-Europeans like me should not be afraid of saying this.” Les Echos: Mandelson The FT reports that the European Medicines Agency is to review its departure procedures after the organisation’s former senior legal adviser, Vincenzo Salvatore, moved to become senior counsel to the European life sciences practice of Sidley Austin in the US. The row is the latest in a number of so-called ‘revolving door’ scandals featuring senior EU agency officials. FT Open Europe Research: EU Quangos