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Daily Press Summary Van Rompuy’s new 2014-2020 EU budget proposal would see cut to UK rebateA compromise proposal for the 2014-2020 EU long-term budget, tabled by Council President Herman Van Rompuy, would see the UK’s rebate reduced. Van Rompuy’s proposal is €75bn less than the Commission’s proposal but remains higher than the UK’s target of a real-terms freeze based on 2011 payments. The FTquotes a UK diplomat as saying, “The rebate is fully justified and we don’t support any changes.” EUobserver notes that a German government spokesman welcomed the new Van Rompuy proposal – which was, however, criticised by Italy, France, Sweden and Poland. Meanwhile, in an interview with German weekly Die Zeit, UK Europe Minister David Lidington said, “We want to freeze the [2014-2020 EU] budget. That remains. Any decision we make in Brussels will have to go to the House of Commons.” Lidington also suggested reducing EU budget periods to “three or five years”. FT EUobserver Repubblica La Stampa Reuters Le Monde Jornal de Negócios Il Sole 24 Ore EC press release Zeit: Lidington Police clash with anti-austerity protesters in Italy, Spain and Portugal; France and Germany experience very weak growth in third quarter of 2012 Anti-austerity protests degenerated into violent clashes between demonstrators and the police in Italy, Spain and Portugal yesterday. Open Europe’s Vincenzo Scarpetta was interviewed by Spanish news agency EFE on the protests and the social impact of EU-mandated austerity in struggling eurozone countries. Meanwhile, new data published yesterday show that economic growth in the third quarter of the year was close to zero in France and Germany. Recession continued in Italy, Spain, Greece and other eurozone countries – with Greek GDP shrinking by 7.2% compared to the third quarter of 2011,Kathimerini reports. EFE El Mundo EUobserver WSJ Expansión La Tribune La Stampa Jornal de Negócios Independent GuardianFT FT 2 CityAM Times Telegraph Irish Times BBC FT 3 FT 4 Kathimerini FT 5 City AM IHT El Economista El Confidencial: Spain considering IMF precautionary credit line as alternative to ESM/ECB bond-buying Spanish news site El Confidencial reports that the Spanish government is looking at a precautionary credit line from the IMF in the event that Germany were to object to a future Spanish request for ESM/ECB bond-buying. The site does not mention any sources. Meanwhile, EU Economic and Monetary Affairs Commissioner Olli Rehn said yesterday that Spain does not need to adopt new austerity measures for 2012-2013, but warned that the country remains at risk of missing its deficit target for 2013. The next review of Spain’s economic situation will be carried out in February, Rehn added. Reuters El País El Mundo Expansión FT DWN In an interview with FAZ, Prof. Dr. Ansgar Belke – a member of Open Europe Berlin’s Advisory Board – suggests that struggling eurozone countries sell gold-backed bonds to reduce their borrowing costs, adding that such a move would also offer an alternative to the ECB’s bond-buying programme. FAZ Speaking at the University of Ghent yesterday, Belgium’s Central Bank Governor Luc Coene said that a write-down of at least part of Greece’s debt will probably be needed to solve the country’s problems, Belgian daily De Standaard reports. Reuters Standaard Kathimerini Kathimerini 2 WSJ: Provopoulos Polish Foreign Minister Radek Sikorski told the Times, “Britain is an indispensable voice for a liberal, political and economic order. What I fear is that the Continent will forge along and that Britain will just say ‘we will give it a pass’, which would be a pity.” Times Germany has voiced opposition to European Commission plans for a 40% female quota on the boards of listed companies, with German Government spokesman Steffen Seibert saying, “We think this is a matter of national competence, not EU law.” Welt EUobserver WSJ Handelsblatt IHT FT In the Spectator, Christopher Caldwell argues that “Britain and Germany agree about the EU’s economics – but they’re still headed for an irreconcilable clash.” Spectator: Caldwell