Follow Us

Follow us on Twitter  Follow us on LinkedIn
 

10 March 2022

Standard Weekly Newsletter




 

Welcome to our weekly e-mail                                                                    Follow us on Follow us on Twitter Follow us on LinkedIn

 

My highlights of the week: The war in Ukraine remained the dominant factor this week as the world was ever-more horrified by new levels of Russian barbarities – forcing Western commercial players (including banks) to withdraw from Russia. Whatever the ultimate consequences, NATO is back at centre stage and the EU is being forced into action on defence, energy and its economy.   The demonstration of the awesome power of the dollar payments system should reinforce the EU’s drive to extend the autonomy of the euro payments system. Turning a blind eye to money laundering by oligarchs/autocrats – wherever they come from – should no longer acceptable to the EU. But the IPCC report reminded us that the climate crisis has not gone away, so green finance may need to adapt in the short term – without losing sight of the longer term imperatives.

 Graham Bishop

(This e-mail provides the headers of a selection of the articles published this week. If you would like to upgrade to our Gold service and  access all articles - with live links to the underlying news - please click on the button) 
 

 

 

Articles from 4-10 March 2022


 

General Financial Policy

Carnegie Europe: What Russia’s War in Ukraine Means for Europe : Russia’s invasion of Ukraine marks a turning point for the EU. When boosting its capabilities and resilience, Europe must not neglect engagement with the wider world.
Der Spiegel: How Vladimir Putin Brought the West Together : The Ukraine war is uniting the West – politically, militarily, morally. But what will the world's democracies do with this newfound unity? Can they succeed in preventing further escalation?
Bruegel: War in Europe: the financial front : Russia is reeling from massive financial sanctions, while Ukraine’s financial system is battered but remains functional, and the EU and global financial systems have rather easily absorbed the initial shock.
POLITICO: Ukraine war gives Macron’s drive for EU autonomy new impetus : Where France sees vindication, others fear Europe turning in on itself. Russia's war on Ukraine has given new momentum to Emmanuel Macron's push to make the EU more autonomous. But the Continent's leaders still need to thrash out what that means in practice. 
Invitation letter by President Charles Michel to the members of the European Council ahead of their informal meeting of 10 and 11 March 2022 : At our informal meeting, I would like us to focus on three particular issues, namely: bolstering our defence capabilities; reducing our energy dependency, in particular on Russian gas, oil and coal, and building a more robust economic base.
EURACTIV: EU leaders unlikely to agree on Ukraine’s candidate status : EU leaders are to pledge support but are likely to stop short of offering fast-track EU membership to Ukraine when they meet for an informal summit in Paris on Thursday (10 March), according to a draft statement, seen by EURACTIV.
POLITICO: Big countries play down calls to waive defense from EU deficit rules : The push comes ahead of this week’s informal gathering of EU leaders in Versailles, France. A push from Central and Eastern Europe to exempt defense spending from EU rules on budget deficits ran into resistance from other capitals on Monday, but has not yet been ruled out.

Banking Union

Reuters Analysis: Ukraine crisis leaves European banks' renaissance in tatters : European banks down 15% since invasion, among worst-hit sectors; Russia losses, delayed rate hikes threaten dividend outlook; Investors, poised to flock back to banks, reconsider
City A.M: Branch banking to be dead and gone in Europe by 2025, survey says : Banking through physical branches could phase out by 2025, a new survey has revealed, as the pandemic-era push to online holds its momentum.
Project Syndicate : For years, Western governments and financial institutions have been gladly profiting from the schemes that allow Russian oligarchs and others to stash their ill-gotten gains abroad. Their complicity has removed the incentives these elites might have had to rein in their countries' authoritarian leaders. 

Capital Markets Union

PensionsEurope input to the EC consultation on the review of the central clearing framework in the EU : Therefore, PensionsEurope proposes to the Commission that the solution would be that the European central clearing houses could provide central bank liquidity to PSAs in times of stress to convert high quality government bonds into cash.
PensionsEurope comments on EBA consultation EMIR rules on Initial Margin Model Validation : It is PensionsEurope’s opinion that the suggested RTS regarding the adoption and governance of IM models will introduce new heavy and unjustified burdens on a vast number of counterparties ...
ESBG response to the European Commission consultation on the upcoming review of the Mortgage Credit Directive : ESBG asks for a limited review on the necessary topics only
EFAMA’s position on the EC's review of the AIFM and UCITS directives : We welcome the targeted approach of the Commission in its review, recognising the overall success of the frameworks over the past decade.

Environmental, Social, Governance (ESG)

UN EP - FI: What conclusions should financial institutions take from the latest IPCC report? : The report provides an alarming summary of the increasingly devastating impacts of climate change on societies and economies, their vulnerabilities and how we may adapt to inevitable climate change. UNEP FI’s Paul Smith provides a summary of the key implications for financial institutions.
S&P: ESG investors warm to nuclear power after EU green label award : Europe's ethical investors may soften their attitude toward nuclear power after the carbon-free technology won EU recognition as a sustainable activity.
Vox: How to reconcile increased green public investment needs with fiscal consolidation : The EU’s ambitious emissions reduction targets will require a major increase in green investments. This column considers options for increasing public green investment when major consolidations are needed after the fiscal support provided during the pandemic. 
CER: How to make the new emissions trading system work for consumers : Extending the Emissions Trading System to buildings and road transport can cut emissions and help poor households if all revenues are devoted to income support and green investment.

Fin Tech Regulation

Carnegie: How Sanctions on Russia Will Alter Global Payments Flows : Beijing sees the Ukraine crisis as its opportunity to gain influence over financial markets...In the longer term, the events of the past few weeks play into the deep concerns in Beijing that China could one day be disconnected from U.S.- and EU-led payments channels.
Finextra: Swift ban extended to Belarus : Three Belarusian banks have been excluded from the Swift financial messaging network as the EU imposes further financial sanctions against warring forces in Uktaine. 

Economic Policies Impacting EU Finance

ECON: Recovery and Resilience tools to support EU countries through the Ukraine crisis : Energy independence, the negative effects of sanctions on Russia, and funds for Ukrainian refugees were among key issues discussed by MEPs and Commissioners on Monday evening. 
BrexitUKandEU's Curtice: Do voters’ perceptions of the consequences of Brexit matter? : Today’s poll asked a new set of questions designed to tap people’s perceptions of whether the UK is better or worse off as a result of being outside the EU. Hitherto, most polls that have addressed the issue have asked people what they think has been the impact of leaving the EU.

About this email


If you do not wish to receive these e-mails, please click this link

If you wish to add a colleague, please inform: office@grahambishop.com

Euro Crisis Limited
PO Box 2002, Battle, East Sussex, TN33 0WL, UK
Tel:+44 (0)1424 777123 Email: office@grahambishop.com
(Registered in England and Wales No. 7984039)
 

© Copyright 2022 Graham Bishop


© Graham Bishop


< Next Previous >
Key
 Hover over the blue highlighted text to view the acronym meaning
Hover over these icons for more information



Add new comment