Britannia Radio

Follow us on:	Home   About Us   €uro-Zone   Research   Media Centre   Make a Donation
New on the Open Europe Blog So Bankia is still a viable bank...? Open Europe Blog Catalonia's bailout request is a test of Rajoy's mettle Open Europe Blog Join the Open Europe team Open Europe Blog
Daily Press Summary MEPs leak reports of ECB bond buying Following a closed door meeting between ECB President Mario Draghi and the European Parliament’s economic and monetary affairs committee, MEP Jean-Paul Gauzes told Bloomberg that Draghi had suggested ECB purchases of shorter maturity debt, under three years, would not constitute ECB financing of governments – thereby dismissing concerns over the legality of such purchases. Sven Giegold MEP, also present at the meeting said, “I assume after this meeting that there will continue to be [ECB] intervention on the secondary market.” Speaking following the reports, the head of the committee, Sharon Bowles, said the leaks were “a complete breach of confidence,” adding, “I think it has brought [the European Parliament] into disrepute.” Writing in the FTD Sven Oliver Clausen recommends that Bundebank President Jens Weidmann, who he terms as “the banker of the people”, should not shy away from informing the public if his independence is threatened either by Draghi or by German Chancellor Angela Merkel and domestic policy objectives. WSJ Times Bloomberg Telegraph Handelsblatt FTD: Clausen Spanish government to inject €4.5bn into Bankia as Andalucia requests government aid The Spanish government announced last night that it will immediately inject €4.5bn into Bankia to raise its capital requirements above the minimum requirement. The money will be repaid once the Spanish bank bailout is finalised in November according to officials. Meanwhile, Andalucia yesterday became the fourth Spanish region to suggest it will need government aid, asking for a state loan of €1bn. However, the regional government said it would not formally make the request until it became clear what conditions would be attached to the loan. FT WSJ FT CityAM WSJ Review & Outlook Bulgarian Prime Minister Boyko Borisov and Finance Minister Simeon Djankov have said their country has indefinitely frozen plans to join the Single Currency. “The momentum has shifted in our thinking and among the public.…Right now, I don't see any benefits of entering the euro zone, only costs,” Mr. Djankov said. Euractiv WSJ Germany's Finance Minister Wolfgang Schäuble said yesterday “The constitutional court will not block, I am sure, the treaties of the fiscal compact and the ESM [permanent bailout fund].” The ruling is due on 12 September. Meanwhile, Chancellor Merkel yesterday told members of her Bavarian CSU sister party that the bailout countries “deserve solidarity”. AFP Irish Independent Reuters Moody’s last night moved the EU’s triple-A rating to a negative outlook. CityAM Telegraph Le Monde Kimmo Sasi, Chairman of the Finnish Parliament’s Finance Committee, argues inHufvudstadsbladet that: “If a euro country does not fulfil the growth pact conditions, it first would get a warning. Then an arrangement could be put in place to force a country out of the currency union after two ‘red cards’.” HBL: Sasi French PM warns coalition MPs that a close vote on fiscal treaty “would mean weakening France” The French government has moved to avert an embarrassing backbench revolt among governing Socialist and Green party MPs on the EU fiscal treaty, warning that a close vote in parliament would weaken France on the European stage. Marine Le Pen has said that she will organise a campaign against the fiscal treaty reports the Telegraph. Irish Times Telegraph House of Commons debates ratification of EU treaty change In the House of Commons last night, William Hague said that ratification of the EU treaty change establishing the eurozone’s permanent bailout mechanism does not trigger the ‘referendum lock’ as it will not affect the UK, and added, “the UK will no longer be exposed to any future programmes of financial assistance for the eurozone through the EU budget. Hansard The FT notes that the Dutch centre-left PvdA party is gaining ground in polls ahead of the 12 September elections, increasing the chances of a coalition of the centre. Open Europe blog: Dutch election primer FT WSJ EU proposes sanctions if companies fail to meet gender quotas According to European Justice Commissioner Viviane Reding’s proposals, national authorities would be able to choose one or all of the following options to enforce a quota of 40% of the seats on supervisory boards being filled by women: financial penalties; exclusion from bids on public contracts; restricting access to national and European subsidies; and requirements to cancel appointments of women or men when a board is too heavily tilted toward one gender. IHT Telegraph City AM The FT reports that, according to data from the ECB, borrowing costs for small businesses in struggling eurozone countries are skyrocketing, making these companies less competitive and further driving divergence within the single currency. FT FT 2 The IHT looks at the ways US firms are planning for the possibility of a Greek exit from the euro. IHT The IHT notes that, according to official statistics, 30,000 Spaniards registered to work in Britain in the last year, a 25% increase from a year earlier. IHT Cyprus will today present its latest deficit cutting plan ahead of the next round of talks as it looks to secure a eurozone bailout. WSJ Glyn Moody in an article for Computer World UK argues that the European Commission is attempting to use the E-commerce directive to reintroduce elements of the ACTA treaty rejected by MEPs. ComputerWorldUK Following reports that the plenary chamber in the European Parliament had to be shut yesterday due to a cracking ceiling, Bild notes the cost of EU premises: the new Council building costs €290m, construction and rental fees of the Commission buildings in Brussels come to €204m, and the EP's “House of European History” project has, so far, cost €31m. Bild