Member states agree to fast-track youth money

A low-key EU summit finished Friday (28 June) with an agreement to fast-track money to tackle youth unemployment and boost lending to small companies, but the meeting was nearly overshadowed by side issues, including a colouring-book featuring fictional MEPs.

"It has been a very productive summit," said EU Council President Herman Van Rompuy, with governments pledging to spend €6 billion over the next two years to support getting young people into jobs or training.

They also agreed to "prioritise" any unspent money from the budget for employment issues, although critics say the sums are too small to make a difference to the EU's 26 million without work.

The European Investment Bank was given the nod to lend hundreds of billions of euros to small businesses - seen as the backbone of the economy, but currently starved of credit.

There was no progress on further steps to banking union, considered essential for ensuring the longterm stability of the eurozone. But the commission said it would come forward with plans on how to wind down failing banks - a key and controversial part of banking union - within two weeks.

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Euobserver

EU agrees agriculture policy reform

EU member states and the European Parliament on Wednesday (26 June) agreed major changes to the bloc's Common Agricultural Policy (CAP). The deal will determine how the €50 billion a year pot is divided among countries over the next 2014-2020 period.

CAP - which eats up the biggest chunk of the EU budget - is meant to aid farmers throughout the EU, but has been criticised for the opaque way it distributes subsidies. The biggest losers in the new deal are set to be large farms in countries such as France and Germany, as the agreement changes how entitlements for subsidies are calculated, no longer tying historical production levels to direct payments.

To stop large farms losing too much of their current subsidies, the deal gives governments the option of limiting the losses to 30 percent. Farmers receiving the least amount of direct payments per hectare will be entitled to at least 60 percent of the national or regional average.

Other provisions include abolishing sugar quotas by 2017, mandatory aid for young farmers, and tying some direct payments to help the environment in rural areas.

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Meanwhile, one issue which remains to be decided is a proposals to limit payments to large farms to €300,000 a year - something governments say should be optional but which parliament wants to be mandatory.

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Under the compromise, 30 percent of all future direct subsidies would be dependent on farmers becoming greener, including leaving 5 percent of their arable land fallow for wildlife.

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Euobserver

EU Releases Hungary From Budget Scrutiny

"European Union finance ministers on Friday released Hungary from the bloc's budget scrutiny after a series of at times controversial moves by the Hungarian government to boost revenue. 

Since Hungary joined the EU in 2004 it has been under review for having budget deficits significantly higher than the EU-mandated 3% of gross domestic product. The European Commission, the EU's executive arm, proposed to allow the country to exit the monitoring procedure in May. Friday's decision formally ends the process".

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Czech PM to quit over graft and spying scandal

Czech Prime Minister Petr Necas is to resign today over a corruption and spying scandal involving his closest aid. Although he has denied any involvement, his coalition partners have pulled their support.

The ruling coalition will now try to form a new government led by someone nominated by Necas’s own Civic Democratic Party (ODS)

“I’ve been following the political developments which began last Wednesday and I know full well what the consequences are for me. That’s why I have announced to the Civic Democratic Party management and also to our coalition partners that I will step down as prime minister,” said Petr Necas.

Pressure had been growing on Necas since his chief of staff, Jana Nagyova was charged with bribing members of parliament and ordering intelligence agents to spy on several people. One of the targets was Necas’s own wife who is divorcing him.

Police who raided government and private offices last week have also detained two former MPs, an ex-minister and the current and former heads of military intelligence.

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MEPs approve Mimica as Croatia's first commissioner

MEPs have cleared Neven Mimica to become Croatia's first commissioner when the country joins the EU on 1 July. Mimica, who currently serves as his country's deputy prime minister, will be consumer protection commissioner until next year's European elections provided he receives the backing of EU governments.

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