Friday 18 November 2011

Spain latest to take hit in European debt crisis

http://www.washingtonpost.com/business/economy/spain-latest-to-take-hit-in-european-debt-crisis/2011/11/17/gIQAzQusVN_story.html

Spain pushed to frontline of euro crisis
http://www.ft.com/intl/cms/s/0/47df9a34-1143-11e1-9d04-00144feabdc0.html

Spain bond sale costs soar toward danger levels
http://www.reuters.com/article/2011/11/17/us-spain-bonds-idUSTRE7AG0S520111117

Spain was managing to keep a low profile – until now

The joke a couple of weeks ago was that Spain's strategy to deal with its debt crisis was to stay out of the news. It seemed to be working. Italian bond yields had climbed above Spain's, a reversal of the order that has prevailed for most of the crisis.
http://www.guardian.co.uk/business/nils-pratley-on-finance/2011/nov/17/spain-was-managing-to-keep-a-low-profile-until-now

Poor Bond Auction Means Spain Should Be ‘Very, Very Worried’
http://blogs.wsj.com/source/2011/11/17/poor-bond-auction-means-spain-should-be-very-very-worried/?mod=google_news_blog

Sarkozy urges Berlin to extend remit of ECB

France’s decision to publicly campaign for a shift in Germany’s position marks an escalation in the battle of wills. At a meeting with deputies from his UMP party, according to leaked accounts, President Nicolas Sarkozy said the euro would not survive unless the ECB decisively entered the fray.

Mr Sarkozy has spoken to Dr Merkel twice in recent days. Last night, after a three-way conference call with new Italian prime minister Mario Monti, they issued a joint statement saying France, Germany and Italy would “assume all their responsibilities so as to ensure the stability, prosperity and strength of the whole of the euro zone”.

Taoiseach Enda Kenny endorsed greater ECB involvement in tackling the crisis during a visit to Berlin this week, while Spanish prime minister José Luis Rodriguez Zapatero, having seen his country’s 10-year bond yields surge to a dangerously high level of 6.78 per cent, called on the European Commission and ECB to act “immediately”.
http://www.irishtimes.com/newspaper/world/2011/1118/1224307767430.html

ECB must act urgently to prevent Italian death spiral

http://www.irishtimes.com/newspaper/finance/2011/1118/1224307759726.html

Merkel Risks the European Union to Save ECB Credibility

http://www.businessweek.com/news/2011-11-17/merkel-risks-the-european-union-to-save-ecb-credibility-view.html

Merkel's fury as Kenny rebuffs her on Euro reforms

http://www.herald.ie/news/merkels-fury-as-kenny-rebuffs-her-on-euro-reforms-2937758.html

Taoiseach clashes with Merkel over changing EU treaty
Enda Kenny has had "frank" discussions with German chancellor Angela Merkel in Berlin and admitted that any changes to the EU treaty would be "challenging"
http://www.belfasttelegraph.co.uk/business/business-news/taoiseach-clashes-with-merkel-over-changing-eu-treaty-16078719.html

"challenging" means the Taoiseach isn't confident of winning a new Irish referendum.

Merkel tightens grip on eurozone: Why did Irish budget plans end up in Berlin?

Fears that Germany’s grip on the eurozone is tightening increased last night after it emerged that details of Ireland’s budget plans were leaked to German politicians.
A document circulated in the German Bundestag revealed Dublin’s proposals to save the debt-ridden country £3.25billion.
The details were for next year’s budget, which have not yet been approved by the Irish Taoiseach Enda Kenny.
http://www.dailymail.co.uk/news/article-2063007/Merkel-tightens-grip-eurozone-Why-did-Irish-budget-plans-end-Berlin.html?ito=feeds-newsxml

Berlin's MPs shrug off controversy over budget information
http://www.irishtimes.com/newspaper/finance/2011/1118/1224307765010.html

EU Banks Face $270 Billion Goodwill Hangover for Past Purchases

Nov. 18 (Bloomberg) -- European banks may have to write down some of the $270 billion of goodwill from their purchases in the run up to the financial crisis before they can sell assets, or new stock, to bolster capital.
http://www.businessweek.com/news/2011-11-17/eu-banks-face-270-billion-goodwill-hangover-for-past-purchases.html


Greece’s Samaras Says He Won’t Sign EU Pledge, Epikaira Reports

http://www.bloomberg.com/news/2011-11-17/greece-s-samaras-says-he-won-t-sign-eu-pledge-epikaira-reports.html

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day's top ConservativeHome features

ToryDiary: Osborne ready to trim benefits increase and hand savings to motorists

BBCtv Politics Show graphic

Pickles Eric Revolutionary

Eric Pickles writing for ConservativeHome: "Our flagship Localism Bill, has been passed and given the Royal Seal of approval. It marks the biggest shift in power since Victorian age - reversing 100 years of creeping centralisation and it restores a gapping local democratic deficit."

Columnist Danny Kruger: There are no easy solutions to unemployment

BaldwinHarriett Baldwin MP on Comment continues our seven part series on ideas to turbo charge the UK economy:Welfare could be localised and extra children shouldn't always mean more

Tim Montgomerie: Can we talk about modern Germany without resorting to WWII imagery?

Local government: Hammersmith & Fulham plans housing preference for TA officers and Special Constables

Today's ConservativeHome newslinks

Osborne will squeeze benefits in order to fund lower petrol duty

"For the past twenty years, annual benefit increases in April have been based on the previous September’s inflation rate. This September, inflation was 5.2 per cent, raising the prospect of a much higher benefits bill than expected. Ministers have now backed a compromise to use a lower inflation rate of 4.5 per cent, based on average inflation during the six months to September." -Times (£)

MERKEL ANGELAEurozone crisis to dominate Cameron talks with Merkel - BBC

  • ""The atmosphere between the two countries is currently frostier than it has been in a long time," the centre-left daily Sueddeutsche Zeitung wrote Thursday. "With his speech he has positioned himself firmly against Merkel, who is calling for more Europe. In Berlin this development is being viewed with concern."" - EUbusiness
  • Cameron will say no to financial transactions tax - Metro
  • Merkel claims Cameron is an integrationist - Sun

Germany's Foreign Minister: Limited EU treaty change must strengthen the economic and currency union and nothing else

"We need to provide for the future and upgrade the monetary union to a stability union... It is vital to send a clear message to markets that the eurozone is determined to end the policies of debt-making. At the European Council in December, we should agree on establishing a convention for a limited treaty change. Its mission would be to strengthen the economic and currency union, no more, but no less." - Guido Westervelle for the FT (£)

  • Frederick Forsyth in The Express: "Franco-Germany has ann ounced that there will have to be an inner core dominated by them and the core will dominate the outer periphery which will have no say in decision-making but will do as it is told. And that includes the UK. Reaction of the British lion? “Oh, er, wow, I mean golly gosh, that’s not very nice.” The usual dynamic leadership."
  • Ms Merkel’s political deputy told reporters: “I’m baffled that in Great Britain there doesn’t seem to be a clear view of the consequences a collapse of the euro would have for the City of London.” - Telegraph
  • An intrusive European body with the power to take over the economies of struggling nations should be set up to tackle the eurozone crisis, according to a leaked German government document - Telegraph
  • Technocracy is just contempt for democracy - Philip Collins for The Times (£)
  • Germany's secret plans to derail a British referendum on EU - Telegraph
  • To save the single currency, Angela Merkel must take on her own country’s economic establishment - Economist

Davis-David-red-tieIn contrast to Westervelle David Davis sets out what Britain should strive to extract from EU Treaty changes

  • "First, we need to reclaim control of justice and home affairs...
  • Second, it is time to reassess Britain’s contribution to the EU budget...
  • Third, we need to take control over key economic issues ranging from business regulation to striking trade agreements."

David Davis writing in The Telegraph.

Why UKIP could be a true scourge of the Tory Party - Amol Rajan for The Independent

Osborne sells off Northern Rock for £400m loss - Independent

REDWOOD JOHN"There is no point people tut tutting about losses on these holdings. The last government was wrong to buy these stakes at the prices they paid. We were bound to lose money on them. Recognising the loss is a necessary part of sorting them out and passing them on to owners who may be able to make them useful to our economy and turn a profit.Those profits can then be taxed. That was why I at the time recommended controlled administration." - John Redwood

Even The Economist backed the nationalisation of Northern Rock but Osborne and Cameron did not - Steve Richards in The Independent

> Yesterday's ToryDiary: Taxpayers lose at least £400m on sale of Northern Rock (and keep the bad bank)

Ed Miliband sets out five-point plan for more responsible capitalism -Guardian

  • Tax cuts for the low paid will reduce unemployment by encouraging people back to work - Fraser Nelson in The Telegraph
  • You could argue that the debt reduction strategy amounts to the biggest tax cut in history - Tim Montgomerie in The Guardian

Rival airline chiefs urged George Osborne yesterday to scrap the hated £2.5billion Air Passenger Duty in order to encourage more holidaymakers to visit Britain - Express

StrikeMaude and Warsi highlight fact that only a minority of public sector workers voted for strike action - Sun

MoD spent £600m on consultants - The Guardian on how cash meant for equipment was used to pay outside specialists in breach of government guidelines on expenditure

Schools in deprived areas could lose most from national funding formula, warns IFS - Guardian

Tories representing rural constituencies fear public backlash over looser planning - Independent

Why on earth is it taking the police so long to decide whether to charge Mr Huhne? - Simon Heffer in theDaily Mail

Only 14% of Britons see police officers on a daily basis - Daily Mail

And finally... Charles Hendry MP and wife buys £8 million mansion in Ayrshire - Herald

Posted by Britannia Radio at 11:52