Integrating Europe

06 March 2014



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Graham Bishop

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Articles from 27 February 2014 - 06 March 2014

Graham Bishop

Financial World: Too little, too late, too light (Graham Bishop article)
Graham Bishop reviews the reactions to the European Commission's banking reform proposals.  View Article
European Integration Monitor - February 2014
The driving forces of politics, finance, economics and budgets are a powerful cocktail that will intensify in the years ahead.  View Article

Political

Election update: Schulz approved as Socialist candidate; EPP receives three candidatures
The Socialists have formally elected EP President Schulz as their Commission President candidate. The EPP received three candidatures - Valdis Dombrovskis, Jean-Claude Juncker and Michel Barnier - and will make the decision in its Congress on 7 March.   View Article
President Schulz: The EU must undergo a radical transformation
Writing in the Guardian, Schulz said that a reformed EU required new leadership and courageous ideas. "I am standing as a Socialist to be the next president of the European Commission because I wish to contribute to this change. But the Commission itself needs reform." He urged the UK not to 'toy with exit'.  View Article
EIM Political - February 2014
The EP elections in under 100 days may be momentous: a pivotal role in selecting the next Commission President and 'capturing' the next Commission for the people of Europe.   View Article

Financial

Introductory statement by ECB/Draghi at the ECON Committee hearing
Draghi appeared in front of the ECON Committee to discuss Banking Union and inflation. He presented the ECB's assessment of the challenges that lie ahead for the new Parliament/Commission and cautioned against complacency, saying it was "too early to claim mission accomplished".  View Article
ECB/Draghi: The path to recovery and the ECB's role
Draghi highlighted three challenges: ensuring price stability in a prolonged period of low inflation, making sure the SSM works well, and establishing an effective macro-prudential policy framework. Continued reform efforts were needed to ensure that the recovery proves sustainable, he stressed.  View Article
FT: Draghi seeks to revive reviled loan bundles to boost credit
Draghi signalled that the ECB could fight deflation and kick-start new lending in the eurozone by buying packages of loans made to households and companies. This would mark a radical departure from the traditional quantitative easing process of buying government bonds.  View Article
German Finance Minister Schäuble's keynote speech at Bundesbank symposium on financial stability
Schäuble stressed that instead of putting energy and expertise into fighting new rules, it should be a joint goal to create a new and improved regulatory framework for financial markets, and to enforce it internationally.   View Article
BoF/Liikanen: Ensuring economic and financial stability in Europe
Speaking at Harvard University, Liikanen said that the institutional and legislative changes taken in response to the recent crisis represented a major and real step forward in European integration.  View Article
Bundesbank/Weidmann: The roles of microprudential, macroprudential and monetary policy in safeguarding financial stability
Weidmann argued that while all three policies have a role to play in financial stability, some restraint is in order, especially with regard to monetary policy. "To put it succinctly: when it comes to handling financial stability risks, monetary policy is a sledgehammer rather than a scalpel."  View Article
EIM Financial - February 2014
Parliament is still on a collision course with Council on SRM: time has nearly run out but fortunately it does not matter in the short term.   View Article
Council approves new rules on deposit guarantee schemes
The Council adopted its position at first reading on a draft directive aimed at further harmonising EU rules on deposit guarantee schemes and enhancing depositor protection. The coverage level was increased from €20,000 to €100,000 and the pay-out deadline reduced to 20 working days.  View Article
ECON Committee: Eurozone has come far, but strong Banking Union still needed, Draghi tells MEPs
Failing banks still need a "strong and swift" EU decision-making system, and the ECB supervisor alone should decide when they are in danger of becoming unviable, Draghi told the ECON Committee.  View Article
ECON Committee: MEPs lay out final offer on bank single resolution mechanism
The lead MEPs in charge of the SRM have drafted texts on the crucial issues for Parliament's April plenary vote. They restate that they will not sign up to a system which establishes a mechanism which is "unfit for purpose" and could potentially jeopardise Banking Union.  View Article
President Schulz launches tough attack on President Barroso for his complacency in defending the treaties
Schulz expressed his regret that the Commission, while expressing reservations on the IGA, had not taken a firm position objecting to the Council's unilateral decision.  View Article
Lautenschläger, Schäuble question risk-free treatment of sovereign debt
ECB Executive Board member Sabine Lautenschläger and German Finance Minister Wolfgang Schäuble have both expressed concerns about the risk-free treatment of government bonds.   View Article
Bloomberg: Euro banks in dark on payment rules for resolution fund
EU Member States are tussling with the EP and among themselves over how money should be paid in to the SRF. "It all seems to be getting far too complicated", said ECON chair Sharon Bowles.  View Article

Economic

Commission concludes in-depth reviews to identify macroeconomic imbalances and assesses progress in fiscal consolidation
The Commission published its conclusions emerging from the in-depth reviews carried out into 17 Member States' economies. The Commission also assesses progress in the correction of fiscal deficits in the Member States concerned, updating its opinions on Draft Budgetary Plans from last year.   View Article
Speaking points by VP Rehn at press conference on winter economic governance package
The winter package responds to requests from Member States to receive policy guidance for their medium-term fiscal and reform plans which they are preparing for April. "Unwinding the macroeconomic imbalances that built up over a long period will require consistent policy action", said Rehn.  View Article
Commissioner Barnier: Shaping a new, competitive Europe
In his keynote speech at the Global Forum on Spain, Barnier said now was the right time to move from a reactive to a proactive approach. "The best reply to populists is to build an efficient and pragmatic Europe", he said.  View Article
Peer pressure could help enhance economic growth, says Eurogroup President Dijsselbloem
Speaking at the Stability and Growth Forum, Dijsselbloem said that peer pressure among ministers and best practices were useful tools for stimulating economic growth and fighting youth unemployment in Europe.  View Article
ECFIN Economic Brief: Financing the real economy
This article addresses the relationship between the real economy and the financial sector, asking the question: to what extent does the crisis in the financial sector cast a shadow on economic activity?  View Article
IMF/Lagarde: Europe—The path to sustainable economic growth
Speaking at the Global Forum on Spain, Lagarde listed three priorities for Europe to attain a trajectory of strong and sustainable growth and job creation. She also looked at the priorities going forward for Spain.  View Article
IMF: European integration, step by step
The latest issue of the IMF's 'Finance & Development' magazine focuses on Europe's drive towards economic integration — the forces bringing it together and those pushing it apart - with contradictory views on how this can work.  View Article
EIM Economic - February 2014
The euro area has emerged from recession but must guard against complacency, so more far-reaching reform lies ahead.   View Article

Budgetary

EU Commission implements audit recommendations adequately, say EU Auditors
A report published by the European Court of Auditors concludes that the Commission adequately follows up and implements a large majority of the ECA's recommendations, and that this has contributed towards improving the financial management in a number of areas of the EU budget.  View Article

Member State events

EIM Member States – Budgets and Economics: February 2014
Good news on bank capital and asset quality in Spain, Portugal, Cyprus and Romania.  View Article
FT: Berlin attacks EU's easing of austerity demands
The German and Finnish finance ministries have issued a stinging rebuke of Brussels' attempt to ease austerity demands on struggling eurozone countries, saying such flexibility improperly provided France and Spain with additional time to cut their budgets to meet EU deficit limits.  View Article
WSJ: Cyprus approves privatisation bill
The Cyprus parliament has approved a slightly amended privatisation bill, meeting a condition set by international creditors for the disbursement of fresh aid to the island.  View Article
Governor Provopoulos on Bank of Greece's 2013 annual report: "Indications are that 2013 was the last year of recession"
Provopoulos cautioned that if this forecast was to become a reality, not only must the conditions contributing to the improved outlook remain unchanged, but they must also be taken further.  View Article
President Barroso: European Commission 'on the side of Ireland'
Barroso praised Ireland's recovery efforts and said that the Commission will continue to support Ireland following its successful exit from the EU/IMF financial assistance programme.  View Article
Statement by the European Commission, ECB and IMF on the eleventh review mission to Portugal
Subject to approval, the conclusion of the 11th review will allow for the disbursement of a further tranche of credit totalling €2.5 billion, moving Portugal on to a new stage in terms of ending its financial assistance programme.   View Article
AFP: President Barroso urges Portugal to exit bailout without safety net
Barroso, the former Portuguese prime minister, has called for Portugal to continue with fiscal austerity so it can exit its international bailout without a precautionary credit line.  View Article
Portuguese PM Coelho: Europe needs more unity, more solidarity and more responsibility
"With the credibility of a country that is on the verge of fulfilling the requirements of the adjustment programme, we say that a greater unity, greater solidarity and more responsibility is the way to go", said Coelho during a conference on the future of Europe.  View Article
Bruegel/Mody: Can Italy break from its past?
Matteo Renzi is Italy's third unelected PM since November 2011 - Mario Monti lasted 18 months, and Enrico Letta resigned after less than a year in office. The generational leadership change is an opportunity. But can Italy break from its past?  View Article
Chancellor Merkel: "We need to reform the political shape of Europe ... Standstill may quickly turn into setback"
In a rare address to both UK Houses of Parliament [the last German leader to address both Houses was west-German president Richard Von Weizsäcker on 26.4.1986], Merkel said: "We need to reform the political shape of Europe in keeping with the times". (Includes reactions and commentaries.)  View Article
EIM February 2014: The UK and Europe – state of play after the Chancellor Merkel visit
The key event was the nearly-"State Visit" of Chancellor Merkel to the UK. The speech was carefully calibrated to avoid exciting hopes of fundamental reform of the EU's system or, conversely, that Europe is unwilling to pay virtually any price to keep the UK in.   View Article
Simon Nixon: UK problem out of Merkel's hands
Writing for the WSJ, Nixon says that Cameron's instinct may be to leave his options open, keeping the world guessing where he stands. But Merkel's recent visit to the UK has now made that more difficult.  View Article
Tim Oliver: The dangers of a passive expulsion of Britain from the EU
It's likely that a combination of the EU's indifference, a need to focus on more pressing matters, weariness at British complaints, and changes to the EU's structures are leading the EU towards a position where it might be able to rid itself passively of the UK, writes Oliver for E!Sharp.  View Article
IMF: Luxembourg—Concluding statement of the 2014 IMF Article IV consultation
The Luxembourg economy is rebounding, the fiscal position remains sound, and the large financial sector has been resilient. But trend growth has slowed substantially, and fiscal, financial and structural challenges lie ahead.  View Article
IMF: Republic of Croatia - Concluding statement of the 2014 Article IV consultation mission
Economic conditions remain very difficult, with real GDP projected to contract for the 6th consecutive year in 2014. The banking system has remained stable, liquid and on average well-capitalised.  View Article
Republic of Lithuania—Concluding statement for the 2014 Article IV consultation by the IMF mission
The economy has entered a broadly favourable trajectory of healthy and balanced growth, as a multi-year reform effort comes to fruition. But income convergence with Western Europe still has a long way to go.  View Article




© Graham Bishop