Open europe : persoverzicht

[Politics.be]

Merkel tries to silence talk of Greece leaving the eurozone;Barroso: Eurobonds will not bring an immediate solution to the eurozone crisisGerman Chancellor Angela Merkel yesterday tried to dismiss talk of an imminent Greek default and rejected suggestions that Greece could soon be leaving the eurozone. In an interview with German radio station RBB, she warned, “Everyone should weigh their words very carefully…I have made my position very clear that everything must be done to keep the eurozone together politically,” adding, “The top priority is to avoid an uncontrolled insolvency, because that would not just affect Greece.” However, the leader of the FDP group in the Bundestag, Rainer Brüderle, is quoted by FAZ saying, in response to Merkel’s comments, “Indeed one should deal carefully with this complicated situation, but it cannot be the case that [a Greek default] can be taboo.”

Merkel will hold a phone conference with French President Nicolas Sarkozy and Greek Prime Minister George Papandreou this evening. FT Deutschland reports on yesterday’s speech by Bundesbank Chief Jens Weidmann in Cologne, in which he urged the German government to decide quickly on whether it wants to make a “big leap” towards fiscal union in the eurozone, adding that such a step would “certainly” require amending the German Constitution.

It was widely reported in the Dutch media yesterday that the Dutch Finance Ministry deems a Greek default unavoidable and is calling for an orderly bankruptcy to prevent contagion. The Finance Ministry denied the reports. Separately, De Volkskrant reports that diplomats are losing their patience with Greece, with one of them quoted saying that “calculations are still being fabricated by the same fraudsters.” Reuters France reports that experts from the EU/IMF/ECB estimate that Greece will not meet its privatisation target this month, due to administrative delays and internal resistance.



Meanwhile, Reuters reports that European Commission President José Manuel Barroso told MEPs this morning that “the Commission will soon present options for the introduction of Eurobonds… But we must be honest: this will not bring an immediate solution for all the problems we face.” Polish Finance Minister Jacek Rostowski told MEPs that “if the eurozone breaks up the EU will not be able to survive,” reports Le Figaro. Separately, the Telegraph reports that US President Barack Obama has urged European leaders to “take a decision on how to co-ordinate monetary integration with more effective, co-ordinated fiscal policy.”



Open Europe’s Director Mats Persson appeared on BBC World Service arguing that a Greek default would damage the ECB’s credibility due to its bond-buying programme and liquidity provision for banks, and that Europe collectively needs to find other ways to deal with the eurozone crisis including an orderly Greek default and the introduction of a wind-down mechanism for banks. Mats also appeared on LBC radio, discussing the eurozone crisis. On the BBC’s Today programme, former Chancellor Lord Lawson argued that eurozone leaders “have got to work out the most orderly way of dissolving the eurozone.”
Irish Independent El Pa�*s 2 Le Figaro BBC 2 Irish Times FT WSJ Independent Guardian
Times City AM Reuters Irish Times IHT Telegraph Mail WSJ WSJ 2 RTL RTL2 RTL3 Volkskrant FAZ FAZ 2 FT EUobserver Standard Le Monde blog: Leparmentier Pravda Le Figaro Reuters France FT Deutschland FT FT: Wolf Telegraph: Reece Telegraph: Leader BBC: Mason Irish Independent: McWilliams Independent: Prosser Times: Kaletsky City AM: Heath City AM: Drake WSJ: Nixon WSJ: Heard on the Street BBC Today: Lord Lawson BBC World Service Open Europe research



Home Office Minister: Government would find it “very difficult” to opt in to EU JHA laws in defiance of Parliament;

Dominic Raab: 2014 opt out decision a “fork in the road”
Open Europe this morning held a debate, “How much power should the EU have over justice and home affairs?” with Home Office Minister James Brokenshire MP, Shadow Europe Minister Wayne David MP and Conservative MP Dominic Raab. Mr Brokenshire said that the Government’s attitude is that EU cooperation should first rely on sharing best practice, improving existing procedures and that legislating should be the last option. He added that the Government welcomed greater scrutiny of decisions to opt in to new EU JHA legislation and said that if Parliament registered a strong objection to a particular proposed EU JHA law the Government would find it “very difficult” to opt in to it.



All the speakers shared the view that the choice the Government must make in 2014 on EU JHA cooperation was crucial and needed thorough public and parliamentary debate. The Government must decide whether, for the first time, to give EU judges the final say over the 80-100 EU crime and policing laws passed prior to the Lisbon Treaty or whether completely to opt out of these laws en bloc. Wayne David pressed the Minister for a parliamentary timetable for a vote on the issue and argued that it was intellectually inconsistent that such a major decision, over a group of laws that include the controversial European Arrest Warrant, would not require a referendum under the Government’s new referendum lock.



Dominic Raab supported calls for a referendum on the 2014 decision, describing it as a “fork in the road” for the UK justice system. He argued that it made no sense to undermine the recently established UK Supreme Court by handing over the last word on many justice issues to the European Court of Justice. Mr Brokenshire assured the audience that the decision on the 2014 choice would be put to a vote in both Houses of Parliament.
Open Europe events



Italy’s borrowing costs continue to rise ahead of final vote on austerity package
At yesterday’s auction of five-year bonds, Italy was forced to pay an interest rate of 5.6% - the highest since the euro was introduced – up from 4.9% in the previous auction in July. The demand was also significantly lower, reports Italian news agency ANSA. Meanwhile, Italy’s second austerity package is expected to be given final approval by the lower house of the Italian parliament today.
ANSA Corriere della Sera El Pa�*s 3 WSJ Mail



Moody’s has downgraded the credit rating of Crédit Agricole and Société Générale, two of France’s largest banks, due to concerns over their exposure to Greek debt. BNP Paribas has been kept on review for a possible downgrade. Separately, Pimco CEO Mohamed El-Erian has warned, “We’re getting close to a full-blown banking crisis in Europe.”
BBC Les Echos Times City AM Guardian Le Figaro Le Point Le Parisien WSJ Businessweek



According to diplomatic sources, a group of seven non-euro EU member states – including Poland, the Czech Republic and Romania – are considering staging national referenda to change their EU accession treaties and scrap the obligation to join the euro once they meet all the criteria.
EurActiv EUbusiness



Chris Heaton-Harris: Taxpayers need to get better value for money from EU aid
Open Europe and the Overseas Development Institute (ODI) yesterday hosted a panel debate in London entitled, “EU aid: What’s it for?” Speaking at the event, Open Europe’s Research Director Stephen Booth argued that the European Commission’s aid policy is ineffective because it is trying to do “too many things”, sometimes duplicating the work of national governments. Stephen also stressed the lack of “full democratic accountability” for how EU aid money is spent, and pointed out that much of EU aid currently goes to neighbouring countries, “which are relatively wealthy in global terms.” Baroness Glenys Kinnnock – Opposition spokesperson for the House of Lords’ Department of International Development – argued that “75% of the world’s poorest live in middle-income countries.” She insisted that “multilateral action is essential” to combat poverty. Baroness Kinnock added that for the UK to be a full member of the EU it had to be fully involved in all EU aid spending, saying “there’s no such thing as ‘outfluence’.”



Conservative MP Chris Heaton-Harris welcomed Open Europe’s report, “EU aid: What is it for?”, as he said that during his years as a member of the European Parliament’s Committees on Budgets and Budgetary Control he had to deal with cases of waste and fraud involving EU aid money. He also argued, “You can never have enough of humanitarian aid”, but, “Taxpayers have the right to know that they’re going to get value for money” from EU aid. Simon Maxwell CBE, Senior Research Associate at ODI, disagreed with Open Europe’s suggestion that all national contributions to EU aid be made voluntary in order to increase transparency and accountability, arguing that governments would be incentivised to donate less, not more. He also said that it is in the UK’s interest to improve the quality of international aid, but that can be better achieved at the EU level.
Open Europe research ODI: Full video



Group of emerging countries working on rescue plan for the eurozone
Brazilian Finance Minister Guido Mantega has announced that officials from the BRICS group of emerging countries – Brazil, Russia, India, China and South Africa – will meet in Washington next week to discuss a potential joint rescue plan for the eurozone. According to Brazilian business daily Valor Econômico, the plan could involve the group of countries stepping up their purchases of sovereign debt of stronger European economies.
FT El Pa�*s EUobserver Valor Econômico Handelsblatt Stern



Osborne puts Cabinet on alert for new EU treaty negotiations
The Times reports that George Osborne yesterday told Cabinet colleagues that negotiations for a new EU treaty could begin in 2013 as the eurozone looked for ways to recover from the crisis. The article notes that some officials believe that there could be two new treaties in the coming years: one to allow eurozone countries to co-operate more closely and a more far-reaching one to recalibrate the EU’s reach.
Times WSJ



FAZ reports that about one hundred German protesters rallied outside the ECB’s headquarters in Frankfurt yesterday. The article notes that they were showing placards saying, “Out of the euro” (Raus aus dem Euro) and “No to debt union” (Nein zur Schuldenunion).
FAZ



The WSJ reports that France and Spain have joined Germany in rejecting a key plank of the European Commission’s planned reform of the Schengen passport-free travel area, arguing that national governments must retain the power to impose temporary border checks, calling this a “core area of national sovereignty.”
WSJ Le Figaro EUobserver FT



MEPs yesterday voted to give extra powers to the EU’s border agency Frontex. Under the new provisions, due to enter into force by the end of the year, Frontex will be allowed to strike deals with third countries on the repatriation of illegal migrants and purchase its own helicopters and cars, but will still not be given its own border guards, notes EUobserver.
BBC EUobserver



A new poll from Stern-RTL shows that German Social Democrats and Greens together have 48% of support, with German Chancellor Angela Merkel’s ruling coalition lagging behind at 35%.
Stern



DPA reports that Socialist MEP Martin Schulz is set to become European Parliament President after his group unanimously nominated him.
DPA


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