Integrating Europe

05 December 2013



Jump directly to

Graham Bishop

Political

Financial

Economic

Budgetary

Member State events
About this email

Articles from 28 November 2013 - 05 December 2013

Graham Bishop

Financial World: The day of the MiFIDs (Graham Bishop article)
The review of the financial instruments directive hangs by a thread as talks bump up against the EU parliamentary elections, writes Graham Bishop  View Article

Political

Commissioner Barnier: The Greek EU Presidency - An opportunity for Greece and for Europe
Barnier reiterated the EU's support of Greece and said that with the EU Presidency, it had the chance to play a key role in the reform process in Europe and "write history" in helping to advance the Banking Union. (Includes link to statement by President Barroso after meeting PM Samaras.)  View Article
VP Reding: Towards a federal Europe
Stressing the need for a political union, Reding said: "We will have to make sure that democracy keeps up with reforms". She called for "a real European Finance Minister in a real European government".  View Article
KAS/Brok: Forces of negation and feelings of inferiority
At the launch of a study on the rise of right-wing populist parties, Elmar Brok MEP, Chairman of the EP's Foreign Affairs Committee, responded with quiet confidence to the resurgent nationalist and populist tendencies in Europe.  View Article
ALDE president calls for fight-back against rising euroscepticism
Addressing the formal opening of the ALDE Party Congress in London, Guy Verhofstadt called for a fight-back against rising euroscepticism and for Liberals to campaign for a stronger, more democratic and accountable Europe.   View Article
LSE/Bertoncini & Kreilinger: EP elections will see populist parties make gains
The authors believe that while populist parties are likely to increase their numbers in the parliament, the major centre-left and centre-right parties will once again come out ahead, with a number of possible coalitions emerging from what is currently an open field.  View Article
EESC/Malosse: It's time to rebuild hope in Europe
In an interview with New Europe, the EESC president talked about the implications of the EU's austerity policy. He also warned against underestimating the power of the anti-EU parties and giving too much power to technocrats.  View Article
Lopatka: National parliaments play a vital role in creating an EU that is close to its citizens
Austrian State Secretary Reinhold Lopatka has called for a discussion on subsidiarity and proportionality in the EU, saying he would like it to become "more efficient and better capable of acting whilst avoiding paralysis through over-regulation".  View Article

Financial

ECB/Mersch: Mastering the crux of defragmentation
Mersch listed competitiveness, deleveraging and institutional barriers as 'evident pitfalls', but said that with prudent action and the necessary safeguards the crux would be manageable.   View Article
Bundesbank/Dombret: The euro area – Routes to a stable monetary union
Dombret spoke on breaking the doom loop of mutual contagion between banks and sovereigns, calling for a change of culture in the banking world.  View Article
New study finds end of the crisis is within reach for the eurozone
If the eurozone and its 17 members stay the course, the systemic crisis that has rocked Europe since 2010 could be largely over by mid-2014. This is the key finding of 'The 2013 Euro Plus Monitor: From Pain to Gain', released by Berenberg and the Lisbon Council.  View Article
EFSF and ESM complete funding programme for 2013
Following a successful three-month bill auction, the EFSF and ESM announced the completion of their funding programmes for 2013. As a result, the potential long-term issuance window scheduled for the week of 9 December will not be used.  View Article
Lithuanian Presidency to sign MoU between Council and ECB on cooperation in bank supervision
The Council of the EU has approved the MoU between the Council and the ECB on cooperation on procedures related to the SSM, as well as the mandate to the Lithuanian Presidency to sign it.  View Article
EP President Schulz: "We will all have to bite the bullet"
Schulz said: "We cannot afford long-winded negotiations in the Council when a bank failure is imminent(...) If we want to have a Banking Union that works and achieves its objectives, we will all have to bite the bullet."  View Article
Q&A with Danièle Nouy, Chair-to-be of the ECB Supervisory Board
Nuoy discussed what her guiding objectives would be, and shared her thoughts on the AQR, Banking Union, the SRM, and other legislative proposals currently being debated in the EP.   View Article
ECB/Mersch: On the way to the European Banking Union - Using opportunities, controlling risks
Mersch elaborated on the practicalities of the balance sheet reviews and stress tests in preparation for the SSM to take up supervision of the eurozone's most important banks in November 2014. He reiterated that the SRM was both justified and necessary.  View Article
ECB/Constâncio: Banking Union and the future of banking
Constâncio said that the Banking Union, and the SSM in particular, would prompt significant changes in the supervision and structure of euro area banking, but that Europe should keep its universal banking model.  View Article
Bloomberg: Brussels should make call on bank failures, document says
Despite opposition led by Germany, EU nations are leaning towards giving the Commission the power to trigger bank resolution, an EU document shows.  View Article
Bruegel/Gandrud & Hallerberg: Who decides? Resolving failed banks in a European framework
Of the competing approaches to a European framework for recovery and resolution, a more supranational approach may lead to more consistently credible commitments to resolve bank failures at minimum public expense, especially when the asset separation tool is used.  View Article
Nicolas Véron: ECB's big moment
Writing for Financial World, Véron assesses the prospects for a successful centralisation of banking supervision under the authority of the ECB.  View Article
Stefano Micossi: The new Single Bank Resolution Mechanism of the European Union
Of the three pillars of the nascent European Banking Union, establishing a unified bank resolution mechanism is the most pressing issue, says Micossi, suggesting some changes to the existing SRM proposals.  View Article

Economic

Competitiveness Council: Conclusions on Single Market policy
The Council adopted conclusions addressing three main strands for a better functioning of the internal market: the governance of the single market; the steps to be taken to unlock the full potential of the services sector; and the actions to promote the transition to electronic procurement.  View Article
VP Rehn: The recovery of the European economy
Rehn spoke on the economic turnaround in Europe and the need for further fiscal integration through a profoundly democratic process.   View Article
VP Rehn: Consolidating the return to growth
In his speech at the 2013 Euro Summit, Rehn said that continued progress with sound public finances should be supported by structural measures supporting sustainable growth and fiscal sustainability.  View Article
VP Rehn: Reform and recovery of the European and global economy
"Europe should not resist global economic forces: it should seek new opportunities from them. Otherwise we run the risk that Europe becomes an open air museum of industrial monuments."  View Article
WSJ: FTT faces more delays; governments remain divided on key details
Berlin's decision to push for a tax that would cover currency transactions could complicate negotiations because the EU's executive arm has warned that such a move would violate the free movement of capital in the EU.  View Article

Budgetary

Council adopts the multiannual financial framework 2014-2020
This decision marks the end of two-and-a-half years of negotiations and allows the new generation of EU spending programmes to be implemented as from 1 January, 2014.  View Article

Member State events

Kathimerini: Barnier calls on Greeks to continue their streamlining efforts; Troika visit postponed
Barnier called on Greeks – mainly the country's government – to make sure they do not reduce their efforts for fiscal adjustment and reforms, adding that a debt haircut was not the issue at present. Moody's upgraded Greece's credit rating by two notches.  View Article
ESM/Regling: Ireland 'right' in clean bailout exit
Regling said that Ireland was "right" to exit the bailout without a precautionary credit line; market reaction to the Government's decision had shown it was the correct one.  View Article
Fitch Portuguese Bank Outlook: Bad debt rise to slow in 2014
Asset quality deterioration, the largest risk, is likely to lessen in 2014. NPLs are expected to rise further, albeit more slowly. (Includes information on 2014 'austerity budget'.)  View Article
Fitch Outlook: Spanish bank restructure benefits to crystallise
The benefits of recent restructuring and integration in the Spanish banking system should crystallise in 2014. These include lower operating costs and the stabilisation of impaired loan growth at some banks, and are a driver for the revision of Fitch's sector Outlook to "stable".  View Article
Remarks by President Van Rompuy after his meeting with Italian PM Letta
Van Rompuy stressed that efforts were still necessary to restore competitiveness and create growth and jobs. Completing the Banking Union was of paramount importance to stabilise the banking sector and economies.  View Article
Reuters: Letta prepares to tackle Italy's voting law stalemate
The Italian PM is under pressure to overhaul a voting law blamed for dragging Italy into political and economic stalemate after the last election. However, economy minister Saccomanni has said Berlusconi's exit should make it easier for the government to push through much-needed economic overhauls.  View Article
Fitch Outlook: Italy bank bad debt may peak, but recovery slow
Impaired loans for the Italian banking sector are likely to plateau in 2014, but recovery in asset quality will take longer because of the fragile domestic economy, according to Fitch Ratings. VP Rehn commented that Italian debt should be reduced faster.  View Article
"Groko" - Germany on its way to a new government
The coalition agreement presented by the CDU/CSU and SPD last week has met with more criticism than approval. However, polls suggest it is likely that the SPD membership will approve the agreement, paving the way for the government to be sworn in on 17 December.  View Article
The German 'Grand Coalition' - Commentary review
The Grand Coalition has been called a success (on domestic issues) by trade unions, and "unintentionally positive" by others. Its stance on Banking Union appears to be "more of the same", but the fact that Germany no longer seems to be insisting on treaty change is seen as a minor breakthrough.  View Article
ECFR/Dullien: What does the German coalition agreement mean for the eurozone?
Dullien writes that some sections of the agreement seem to be hiding the real impact of the proposed policy measures, in order to soothe criticism in both camps. However, the decisive majority in the Bundestag could be enough to change Germany's constitution to allow for much bolder steps.  View Article
Fitch: French banks' 2014 strategy updates to focus on core units
French banks' new strategic plans are likely to extend their focus on core franchises, balance sheet strengthening and streamlining. Fitch predicts that any external growth plans would be highly selective and limited to small bolt-on acquisitions.  View Article
Goldman Sachs may reconsider London as a hub if UK quits EU - Comments by Sharon Bowles MEP
Bowles warned of dramatic job losses in the financial sector if the UK were to leave the EU, after co-CEO Michael Sherwood said Goldman Sachs would be likely to 'drastically reduce' its activities in London in case of an EU exit. EP president Schulz said the UK should be a 'fully-fledged' EU member.  View Article
EPIN/Möller: Why trying to keep the Germans close on EU competences is risky for Britain
Möller writes that if Britain is to be successful in winning over Germany on EU reform, it needs to understand how Germany's federal system is an integral part of modern Germany and key to the country's thinking on Europe.  View Article
Opinium: In or Out? Britain's future in Europe
Evidence from Opinium's latest poll suggests that the British public would ultimately vote to leave the EU in a referendum, although this is by no means as certain as it is often portrayed.  View Article
WSJ: Luxembourg parties strike deal paving way for new government
Luxembourg's three smaller parties have reached a deal on a coalition programme, clearing the way for a new government to take office - a move that has brought to an end Prime Minister Jean-Claude Juncker's almost 20 years in power.  View Article
Slovenia Times: Law changes to enable rapid bank recapitalisation
The Slovenian Parliament has approved a bill allowing the government to use up to €4.7 billion for a rapid recapitalisation of the main banks in difficulty, owned predominantly by the Slovenian State.   View Article
Finnish government decides on implementation of structural policy programme
On 29 November, the Finnish government agreed on a reform plan that aims to reduce public spending by around €1 billion by 2017.  View Article




© Graham Bishop