Britannia Radio

Follow us on:	Home   About Us   €uro-Zone   Research   Media Centre   Make a Donation
New on the Open Europe Blog Germany's euro exit "not science fiction" for Berlusconi Open Europe Blog Westerwelle's journey into fantasy world Open Europe Blog UK Government set to announce repatriation of EU police and crime laws Open Europe Blog
Daily Press Summary Eurozone starts discussions on central budget The WSJ reports that eurozone states have started discussions on forming a central budget to smooth over the currency bloc’s divergences. The budget would likely be financed by rerouting a slice of national taxes rather than issuing joint debt – an approach which is more acceptable to Germany, although the Netherlands and Austria are still opposed. WSJ Germany, Finland and the Netherlands raise doubts over ESM bank bailouts  Following a three-way meeting in Helsinki yesterday, the finance ministers of Germany, the Netherlands and Finland issued a joint statement saying, "The ESM can take direct responsibility of problems that occur under the new supervision [of the ECB], but legacy assets should be under the responsibility of national authorities," seemingly putting pay to hopes that Spain and Ireland could shift the cost of their bank bailouts off the government’s books onto the ESM, the eurozone’s permanent bailout fund, once the ECB becomes the eurozone’s single supervisor. In the FT, Martin Wolf argues that German exit from the euro “is indeed an option. If it is rejected, as I predict, much the same [economic] adjustments will ultimately occur in even more painful ways. The alternative is the transfer union that Germans fear.” Joint statement FT Reuters Handelsblatt CityAM WSJ El País Expansión The Irish Independent FT: WolfFT: Plender FT: Editorial City AM: Heath Samaras approves €11.5bn austerity package ahead of general strike; SKAI TV: IMF considers withholding next payment to Greece  Greek Prime Minister Antonis Samaras yesterday approved the package of €11.5bn cuts presented by Finance Minister Yannis Stournaras. Stournaras will discuss the measures with the other two coalition leaders today. The Greek government today faces the first general strike since February. Meanwhile, Greek TV channel SKAI reported yesterday that the IMF is considering withholding its next bailout payment to Greece until the Greek government makes a decision on debt restructuring. Kathimerini Kathimerini 2 City AM El País Sole 24 Ore Le Monde Bild Spiegel Süddeutsche DWN WSJ FTDHandelsblatt Anti-austerity rally turns violent in Madrid; Early elections in Catalonia on 25 November An anti-austerity rally outside the Spanish parliament building in Madrid turned violent yesterday, with 35 people arrested and 64 injured. Meanwhile, Catalan President Artur Mas has announced that early elections will take place in Catalonia on 25 November. Separately, Andalusia’s Treasury Minister Carmen Martínez Aguayo said yesterday that the region will “very likely” seek a €4.9bn bailout from the Spanish government. In an interview with the WSJ, Spanish Prime Minister Mariano Rajoy said that his government will on Thursday unveil, among other measures, plans for the creation of an independent body to monitor Spain’s compliance with EU-mandated deficit targets. The interest rate on Spain’s ten-year bonds is again above 6% this morning, notes El País. WSJ: Rajoy El País El País 2 El País 3 El País 4 El País 5 Cinco Días Cinco Días 2 Cinco Días 3 El Mundo El Mundo 2 El Mundo 3 Expansión Expansión 2 El Economista BBC IHT EUobserver FT City AM Irish TimesIrish Independent Sole 24 Ore DWN Welt Nick Clegg: “Perfect storm” could result in an in-out EU referendum in the next Parliament The FT reports that speaking at the Liberal Democrat party conference, Nick Clegg has warned that a build-up of significant and contentious EU related decisions – including over the EU’s long term budget, banking union and the ‘block-opt out’ from EU crime and policing laws – could trigger “a perfect storm”, with the resulting strains with Europe becoming so intense that either Labour or the Conservatives could be forced to offer an “in-out” EU referendum in the next parliament. A Times leader argues that “The single currency and the EU are of profound importance to Britain. They should not be ignored at party conferences…You first, Nick Clegg.” Times: Leader FT An INSA poll for Bild has German Chancellor Angela Merkel’s CDU party still in the lead on 36% followed by the SPD on 30%, the Greens on 14%, with the left-wing Die Linke party on 6% and the FDP and the Pirate party both on 5%. Bild Draghi defends ECB bond-buying in Germany Speaking to the German Industry Federation (BDI) yesterday, ECB President Mario Draghi defended the ECB’s new bond-buying programme, insisting that “the greatest risk to stability is not action, but inaction”. Draghi stressed that Germany had benefitted substantially from being part of the euro and added, seemingly in a swipe at German fears of inflation, that in times of crisis “we cannot always look to the past for answers.” FT CityAM WSJ The Irish Independent Corriere della Sera La Stampa Le Monde Irish Times Guardian FT 2Times Otmar Issing: “Inflation is the most anti-social policy” In an interview with Die Welt, former ECB chief economist Otmar Issing argued that “There is no immediate risk of inflation. However I have my doubts that the ECB will stop its immense liquidity at the correct time. If this fails, prices will rise. I do not anticipate hyperinflation. However, even an inflation rate of 4 to 5% disposes savers and creates social problems…Inflation is the most anti-social policy.”  Welt Bild Standard & Poor’s yesterday predicted that the eurozone would not grow again until 2014, slashing its forecast for this year to -0.8% GDP growth and zero growth in 2013. The forecast for Spain was especially dim, with the rating agency’s estimate of the level of contraction more than doubling. CityAM Forbes has published a map of total EU budget expenditure per capita by member states based on figures previously compiled by Open Europe. Forbes MEPs are considering making it a requirement that a woman be appointed to the ECB Executive Board, so far composed only by men. Reuters EUobserver The FT reports that Berlin is going it alone on the regulation of high-frequency trading after frustration at the lack of progress at the EU level. The proposed law would include giving regulators access to trading algorithms at all times. FT Open Europe research: Continental Shift Elsevier reports that the Dutch government is opposed to plans by European Council President Herman Van Rompuy to shift supervision of national budgets from the European Commission to the 17 eurozone member states in the European Council. Elsevier The European Commission yesterday adopted rules aimed at increasing transparency within the EU’s Common Agricultural Policy, with member states required to publish the first and last names of beneficiaries as well as the reasons why they obtain the funds, reports EUobserver EUobserver EC Press Release Open Europe research: CAP reform

---