Euro Is Facing Disintegration, Commission Warns
THE DAILY TELEGRAPH: The euro faces 'disintegration' unless European governments do much more to work together, the European Commission has warned.

Olli Rehn, the economics commissioner, gave the warning as Mario Draghi, the head of the European Central Bank, criticised national leaders for a “lack of action” to help the single currency out of its crisis.

Spain remained at the eye of the financial storm yesterday, amid continuing fears for its banking sector.

Investors in Spanish banks are withdrawing money at a record rate, figures showed yesterday. More than £55 billion was withdrawn and moved out of the country last month.

Yesterday’s figures are for the month before the Spanish banking crisis entered its latest phase with the nationalisation of Bankia, one of the country’s biggest banks.

Even more money is thought to have left the country since then, raising fears that Spain is locked in an unbreakable cycle of market panic.

The flow of money out of Spain has raised fears that its banking system could collapse, requiring a bail-out that its government cannot afford.

Those fears are pushing up Spanish borrowing costs, which intensifies pressure on Spanish banks. » | James Kirkup, Deputy Political Editor | Thursday, May 31, 2012

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Le Portugal demande l’aide financière de la Commission européenne
TRIBUNE DE GENÈVE: Le Portugal a demandé mercredi à bénéficier d’une assistance financière de l’Union européenne, a annoncé le président de la Commission européenne José Manuel Barroso dans un communiqué.

"Le Premier ministre du Portugal José Socrates a informé ce jour (mercredi) le président de la Commission européenne José Manuel Barroso de son intention de demander l’activation des mécanismes de soutien financier" de l’UE, a précisé la Commission.

"Le président de la Commission a assuré que cette demande serait examinée le plus rapidement possible (...) et s’est dit confiant dans les capacités du Portugal de surmonter ses difficultés actuelles avec la solidarité de ses partenaires", a ajouté la commission. Peu auparavant, le Premier ministre portugais José Socrates avait annoncé lors d’une allocution télévisée que le gouvernement portugais avait "décidé aujourd’hui même d’adresser une demande d’assistance financière à la Commission européenne". » | AFP | Mercredi 06 Avril 2011

EU to Ban Cars from Cities by 2050
THE DAILY TELEGRAPH: Cars will be banned from London and all other cities across Europe under a draconian EU masterplan to cut CO2 emissions by 60 per cent over the next 40 years.

The European Commission on Monday unveiled a "single European transport area" aimed at enforcing "a profound shift in transport patterns for passengers" by 2050.

The plan also envisages an end to cheap holiday flights from Britain to southern Europe with a target that over 50 per cent of all journeys above 186 miles should be by rail.

Top of the EU's list to cut climate change emissions is a target of "zero" for the number of petrol and diesel-driven cars and lorries in the EU's future cities.

Siim Kallas, the EU transport commission, insisted that Brussels directives and new taxation of fuel would be used to force people out of their cars and onto "alternative" means of transport.

"That means no more conventionally fuelled cars in our city centres," he said. "Action will follow, legislation, real action to change behaviour." » | Bruno Waterfield, Brussels | Monday, March 28, 2011

Ambrose Evans Pritchard’s Viewpoint: Europe's Fiscal Fascism Brings British Withdrawal Ever Closer
TELEGRAPH BLOGS: Just when you thought the EU could not go any further down the road towards authoritarian excess, it gets worse.

The European Commission is calling for EU powers to vet budgets of the 27 member states before the draft laws have been presented to the House of Commons, the Tweede Kamer, the Folketing, the Bundestag, the Assemblee Nationale, or other national parliaments. It applies to Britain even though we are not in EMU.

Fonctionnaires and EU finance ministers will pass judgement on the British (or Dutch, or Danish, or French) budgets before the elected bodies of these ancient and sovereign nations have seen the proposals. Did we not we not fight the English Civil War and kill a king over such a prerogative?

Yet again we are discovering the trick played on our democracies by Europe’s insiders when they charged ahead with EMU, brushing aside warnings by their own staff economists that monetary union was unworkable without fiscal union. Jacques Delors knew perfectly well that this would lead inevitably to a crisis, but it would be the “beneficial crisis” that would force sovereign parliaments to submit to demands that they would never otherwise accept. Read on and comment >>> Ambrose Evans-Pritchard | Friday, May 14, 2010

Greece Refuses EU Austerity Measures Demand
TIMES ONLINE: The Greek Government looked set on a collision course with the European Commission today as its finance minister denied demands that it needed to take further austerity measures to cut its debt.

Hours ahead of a two-day meeting of eurozone finance ministers in Brussels, being held to scrutinise Greece's existing plan to cut is deficit, Olli Rehn, the new EU Commissioner for Economic and Monetary Affairs said: "Our view is that risks... are materialising, and therefore there is a clear case for additional measures.”

But George Papaconstantinou, the country’s Finance Minister, said the EU needed to show more support to Greece instead of expecting more detailed austerity measures.

He said: “If we announce today new measures, will that stop markets attacking Greece?

“My guess is that what will stop markets attacking Greece at the moment is a further more explicit message that makes operational what has been decided last Thursday at the European council."

Mr Papaconstantinou said Greece “is doing enough” to reduce its public deficit from 12 per cent to 8 per cent of GDP this year, under emergency fiscal cuts submitted to the European Commission which EU finance ministers are examining.

He said: “We are trying to change the course of the Titanic, it cannot be done in a day.” Although, he added: “If additional fiscal measures are needed, we will take them.” >>> Robert Lindsay | Monday, February 15, 2010

La City redoute une régulation à la "française"
LE MONDE: Michel Barnier se serait bien passé de cette empoignade. Le prochain commissaire au marché intérieur craint de voir son début de mandat empoisonné par l'opposition entre le Royaume-Uni et la France au sujet de la régulation financière. Entre Paris et Londres, le ton est monté de plusieurs crans depuis la nomination du Français par le président de la Commission européenne, José Manuel Barroso, à un poste stratégique en ces temps de crise, puisqu'il chapeaute les services financiers.

Les Britanniques s'inquiètent du sort de la City de Londres, la principale place financière européenne. Ils ont tout fait pour empêcher M. Barroso de nommer à cette fonction une personnalité soucieuse de pousser les feux de la régulation. Ils n'ont ensuite pas apprécié que Nicolas Sarkozy présente leur pays, dans un commentaire accordé au Monde, comme le "grand perdant" de la récente répartition des postes bruxellois. Et jette ensuite de l'huile sur le feu en affirmant que ce sont "les idées françaises de régulation qui triomphent en Europe".

Cette "guéguerre" complique la formation des cabinets des commissaires, à Bruxelles. Déjà flanqué, à la demande du premier ministre britannique, Gordon Brown, d'un directeur général britannique, M.Barnier refuse de recruter un conseiller proche des intérêts de la City. Ce qui déplaît à Londres, lequel a fait pression sur Catherine Ashton, la toute nouvelle haute représentante de l'Union européenne pour la politique étrangère, afin qu'elle renonce à ce st.ade à recruter un Français dans son cabinet. >>> Philippe Ricard et Marc Roche | Jeudi 03 Décembre 2009

Europe Launches Major Push for New Banker Bonus Rules
SPIEGEL ONLINE INTERNATIONAL: France, Germany and the EU are launching a major offensive to change the system of bonuses paid out to bank employees. Knowing that it won't work anywhere if it isn't implemented everywhere, they are hoping to make it a major issue at the upcoming G-20 summit in Pittsburgh.

The debate surrounding bankers' bonus payments has finally reached Brussels. In an interview with the daily Hamburger Abendblatt, European Commissioner for Enterprise and Industry Günter Verheugen said that the European Union will reach an agreement very soon on limiting the income of bank managers.

Verheugen also told the paper that the European Commission believes that, when it comes to a bank's system of compensation, there should be "no direct relation with a company's short-term profits." Instead, he is confident that the EU's member states and parliament will be able to reach a swift agreement on the issue.

Likewise, Verheugen also voiced his support for measures to impose high taxation rates on the bonuses of bankers whose companies receive state support. "What we're really talking about here," Verheugen told the paper, "is figures arising when a company has been kept alive by the state for a long time." >>> wal/jtw - with wire reports | Wednesday, August 26, 2009