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New on the Open Europe Blog While everyone is talking bond-buying, here's the full (leaked) proposal for an EU Banking Union Open Europe Blog Draghi: Germany's new bogeyman? Open Europe Blog The death of the Bundesbank? Germans come out swinging against ECB bond-buying Open Europe Blog
Daily Press Summary German MP launches last minute legal challenge demanding Constitutional Court takes new ECB bond-buying programme into account before Wednesday’s ESM rulingFollowing ECB President Mario Draghi’s announcement last week of the ECB’s new bond-buying programme, backbench CSU MP Peter Gauweiler has lodged a last-minute appeal at the German Constitutional Court for the issue to be considered alongside the existing challenges to the ESM and the fiscal treaty, on which the Court is due to rule on Wednesday. Die Welt cites Gauweiler as arguing that “the ESM - as long as it is constitutional at all - should only be able to come into force when the ECB has taken back its self-awarded power as a hyper rescue-shield.” FDP leader and vice-Chancellor Philipp Rösler said that there was “no connection” between the two issues. Meanwhile, the prevailing opinion in Germany ahead of Wednesday’s ruling is that the Court will give the go-ahead, albeit in return for some minor adjustments. Thomas Oppermann, the parliamentary speaker of the SPD, told Tagesspiegel that he expected the ESM to be declared constitutionally acceptable. Reuters FT Irish Times Welt FTD Spiegel Süddeutsche: Prantl Guardian: Beck Centre-right and centre-left parties in dead heat ahead of Wednesday’s Dutch electionsLatest opinion polls ahead of Wednesday’s parliamentary elections in the Netherlands show Prime Minister Mark Rutte’s centre-right Liberal Party and Diederik Samsom's centre-left Labour Party tied, with each set to win 35 seats in the 150-seat parliament. However, an Ipsos Synovate poll published over the weekend has revealed that 43% of voters are still undecided. Meanwhile, a separate TNS Nipo poll cited by Reuters has found that voters believe that Rutte would best serve the country’s interests in Europe. WSJ AFP Saturday's Times FT Weekend Reuters Dutch News.nl Commission proposal for banking union could give both ECB and EBA new powers over member statesOver the weekend, the draft proposal for an EU banking union due to be tabled by the Commission on Wednesday was leaked. The first in a series of three proposals leaked on Friday, stated that the ECB "will coordinate the position of euro area members of the [European Banking Authority]... in supervisory matters.” Reuters reports that the second proposal includes attempts at ‘safeguards’ to avoid the Eurozone getting too much power in the EBA, including a committee of ‘impartial experts’ to rule on breaches of EU banking rules by any member state, two non-euro countries on its six-member management board and the ability to effectively over-rule the ECB by taking a decision directly applicable to a bank or institution. Commenting on the first text, Open Europe’s Mats Persson was quoted in Saturday’s Telegraph warning that “The UK Government must push for a far clearer division between the banking union and the EU single market – the property of all 27 countries – than what is offered in this proposal.” Open Europe blog Telegraph Reuters Euractiv Saturday's Telegraph Troika rejects part of latest Greek austerity package as unrealistic; Merkel fears Greek exit would still constitute a Lehman-type eventThe WSJ reports that, according to senior Greek officials, the EU/IMF/ECB troika has rejected €2bn of proposed spending cuts in the latest austerity package by the Greek government as unrealistic. The Greek coalition is also still to agree on a final structure for the package with Democratic Left and Pasok still concerned by the size of the public sector wage and pension cuts. The leaders of the coalition will meet on Wednesday in an attempt to finalise an agreement. Der Spiegel reports that German Chancellor Angela Merkel has told her closest advisers that a solution must be found which keeps Greece in the eurozone, for fear of unleashing a Lehman-style crisis. The article also notes that a Greek exit could cost Germany €62bn. Kathimerini CityAM WSJ IHT FT Kathimerini 2 Spiegel Monti rejects claims that he will stay on as PM after the next electionsThe WSJ reports that Italian Prime Minister Mario Monti dropped a hint that he may look to stay on as PM after the spring elections in Italy, saying in a speech over the weekend that "Italians want governability." However, the Italian press notes that in the same speech Monti actually rejected the idea, saying, “The technical government is an episode limited in time…I will not run for the elections in 2013”. A poll by ISPO published on Sunday in the Corriere della Sera found that 37% of Italian voters would like his ‘technical’ government to stay on after the elections. Monti also added that if he did seek a bailout under the ECB’s new bond purchase scheme, he would not accept any extra conditions or austerity. WSJ CityAM CityAM Saturday's Telegraph Sole 24 Ore Libero Hollande unveils further austerity as French growth faltersFrench President Francois Hollande yesterday outlined his plans for up to €20bn in cuts to be included in his next budget later this month, in order to meet the country’s deficit targets laid out under eurozone rules. The French Central Bank announced today that it expects the French economy to contract by 0.1% in the third quarter of this year. A survey by BVA published in Le Parisien on Sunday found that 60% of the French population are unhappy with Hollande’s performance so far. WSJ The WSJ’s Simon Nixon cites findings from Open Europe’s “Trading Places” report showing that “intra-European trade in goods is still 70% below the US as a percentage of GDP”, and that “six years after the European Services Directive was agreed, services account for 71% of total EU GDP yet just 3.2% of this is a result of intra-EU trade.” WSJ: Nixon Open Europe Research: Trading Places The FT reports that over the weekend George Soros called on Germany to “lead or leave” the eurozone, adding that his preference is strongly for the former.FT Times BBC The FT Weekend reported that the Portuguese government has unveiled a new round of austerity measures, including a large increase in social security payments for both public and private sector workers, but a reduction for companies’ contributions.FT Weekend A YouGov poll has found that 56% of Britons would like a referendum on the UK’s membership of the EU, while 71 % said they did not trust MEPs to put the UK’s interests first. Sun on Sunday Express Der Spiegel reports that Polish Prime Minister Donald Tusk is Angela Merkel’s preferred candidate to take over as President of the European Commission from Jose Manuel Barroso in 2014.Welt Zeit TVN Puls Biznesu The FT reports that the EU’s Liikanen review, due next month, will force banks to ring-fence their trading activities. Under the plan a bank that exceeded a threshold of trading assets as a proportion of total assets, possibly set as low as 5%, would be obliged to establish a separately subsidiary to house that activity.FT The appointment of Luxemburg’s Yves Mersch to the ECB governing board, due to be confirmed on 13 September, will be delayed as MEPs, who must approve the appointment are unhappy that no female candidates were considered for the job.European Voice Bloomberg Britain, France and Germany have urged the rest of the EU to impose new sanctions on Iran over its disputed nuclear programme.BBC The Mail reports that more than 100,000 Russian citizens could qualify for EU passports because Latvia is extending citizenship to Latvians exiled to Siberia under Soviet rule.Mail