open europe

	Home   About Us   Multimedia   In The News   Events   Research & Analysis Media Centre Open Europe Berlin
New on the Open Europe Blog Doves dominate as central banks show the way ahead in Europe  Open Europe Blog Frenchelon: Is France really shocked it might be spied on?  Open Europe Blog Portugal's coalition fights to keep its head above water  Open Europe Blog
Daily Press Summary Conservatives set to back EU referendum bill; Labour MP puts pressure on Ed Miliband with call for early referendum The private member’s bill enshrining David Cameron's pledge of a referendum on Britain's EU membership into law is set to be backed by Conservative MPs today. The majority of Labour and Liberal Democrat MPs are expected to stay away for the vote. However, Labour MP Ian Austin, a former aide to Gordon Brown, wrote in his local Express and Star newspaper, “The truth is that the UK needs to decide and I would prefer it to do so more quickly. I know this isn’t Labour Party policy, but my view is that we should have a referendum next year on the same day as the European elections.” He also added, “I would keep a free-trade single market but think we should decide on the social legislation and so on ourselves.” A Sun leader article argues, “Win or lose, the message from today’s vote on guaranteeing an in/out referendum over Europe is simple: the Tories want you to have a say. Labour and the Lib Dems don’t.” Open Europe research Sun Guardian Express City AM Telegraph BBC Conservative Home FT: Riley Deal to keep Portuguese coalition alive looks within reach Portuguese Prime Minister Pedro Passos Coelho yesterday held talks with Foreign Minister Paulo Portas, who is also the leader of junior coalition member CDS-PP, and Portuguese President Aníbal Cavaco Silva. After the meetings, Passos Coelho told reporters that a “formula” will be found “to guarantee CDS-PP’s political support to the government and ensure the country’s political stability”, but refused to provide further details. The prospect of a deal has calmed the markets slightly, with the interest rate on Portugal’s ten-year bonds below 7% this morning. Open Europe’s Raoul Ruparel is quoted by the Independent as saying, “Although Portugal has financing in place until the end of the year, it is still subject to stringent reviews. This suggests political turmoil could cause serious problems when it comes to releasing this financing which Portugal desperately needs over the summer.” Open Europe’s Vincenzo Scarpetta’s Twitter coverage of the situation in Portugal featured on the Guardian’s live blog. Open Europe flash analysis Open Europe blog Diário Económico Jornal de Negócios Diário Económico 2Jornal de Negócios 2 Jornal de Negócios 3 RTP Diário de Notícias Economist FT WSJ Times Irish times BBCFAZ Süddeutsche Independent Guardian: Live blog Público Dovish Draghi surprises markets, says rates will stay down for “an extended period” ECB President Mario Draghi surprised the markets yesterday by adopting a policy of ‘forward guidance’ (forecasting future policy) in contrast to the ECB’s usual approach. Draghi said interest rates would stay at current levels or below “for an extended period of time”, but refused to specify an exact date. He also stressed the decision was “unanimous”, meaning it had support from the usually more hawkish German Bundesbank. European stock markets rallied, the euro weakened and government borrowing costs dropped although this response was fairly short-lived. Earlier in the day, the Bank of England adopted a similar approach. Open Europe blog FT FT 2 FT 3 WSJ IHT El Mundo European Voice BBC US-EU free trade talks look set to go ahead next week despite concerns over US spying on Europe. The US has offered to hold “parallel discussions” on its spying operations in Europe. Meanwhile, Der Spiegel reports that German Chancellor Angela Merkel’s CDU/CSU has dropped its support for data retention, a move which the magazine notes would necessitate revision of the EU’s Data Retention Directive. Spiegel Welt FT WSJ FT 2 FT 3 Greece is racing to wrap up talks with the EU/IMF/ECB Troika to allow for the latest review of its bailout programme to be completed at Monday’s meeting of eurozone finance ministers. A deal looks possible after the Troika signalled some flexibility on the targets for cutting the number of civil servants. Kathimerini Kathimerini 2 Kathimerini 3 WSJ FAZ Süddeutsche Welt In its latest assessment on Italy, the IMF said that a controversial property tax on first homes “should be maintained for equity and efficiency reasons.” The assessment triggered a huge backlash from Silvio Berlusconi’s party. Scrapping the tax is one of the conditions for Berlusconi’s continued support to Italy’s coalition government.  Il Sole 24 Ore IMF statement Repubblica FT WSJ France’s former Environment Minister Delphine Batho said of the French government’s economic policy yesterday, “The austerity that dare not speak its name paves the way to power for the far right.” Batho was forced to resign after she complained about cuts to her department in the 2014 draft French budget.  Le Figaro Le Monde The Mail notes that a report by the European Insurance and Occupational Pensions Authority to the European Commission predicted that the deficit in UK pension funds would soar by £150bn to £450bn if so-called Solvency II rules were introduced. Open Europe research Mail In the Times, Ross Clark argues that “an open door immigration policy with EU states throws a great spanner in the planning machine.” Open Europe research Times: Clark Mail In an interview with Le Figaro, EU Tax Commissioner Algirdas Šemeta says the European Commission “is not opposed” to applying a financial transactions tax on sovereign bonds at a lower rate to avoid increasing borrowing costs for the participating countries. Open Europe blog Le Figaro: Semeta A spokesman for the EU’s foreign policy chief Catherine Ashton yesterday said that the EU had no immediate plans to re-think its aid programme to Egypt in light of recent developments in the country. Open European research: European Neighbourhood Policy European Voice In a full page FAZ op-ed, former ECB Chief Economist Otmar Issing argues that “Eurobonds would breach fiscal sovereignty” as they would lead to “a transfer of taxpayers’ money without democratic control.” He also advocates the “return of the no-bail-out principle” as “each country is in the end responsible for the consequences of its policy.”  FAZ: Issing According to Die Welt, ECB Executive Board member Jörg Asmussen has warned the Cypriot government that the ECB could break off its assistance to Cyprus if the government seeks to revise the terms of its bailout.  Welt Handelsblatt FAZ Frankfurt is preparing to launch a direct challenge to London in the race to become a base for offshore trading in the Chinese yuan, with the suggestion that the European Central Bank may soon step in with a giant currency swap, the Times reports. Times