Újabb izlandi nem az Icesave-kártérítésre

Új szakaszába érkezett az Izland és az Egyesült Királyság valamint Hollandia közötti vita az összeomlott online bank külföldi betéteseinek kártalanításáról, miután az izlandi szavazók szombaton másodjára is elutasították az ezt rendező egyezség törvénybe iktatását. Az izlandi szavazók 60 százaléka szavazott az egyezmény ellen, amely 5,5 százalékról 3,2 százalékra csökkentette volna le a London és Hága által követelt kamatot. A szavazók többsége azonban még így sem tartotta igazságosnak, hogy állami pénzből fedezzék a pénzügyi szektor hibáit. 2008-ban, az izlandi Icesave internetes bank összeomlását követően a brit és holland betéteseket 3,8 milliárd euró értékben kárpótolták a saját kormányaik. A londoni és a hágai vezetés most ezt az összeget szeretné visszakapni. Az izlandi kormány végül megegyezett a kártérítés fizetésének ütemezéséről, azonban azt márciusban a lakosság 91 százaléka elutasította. Az eredeti feltételek szerint 15 év alatt fizette volna ki a teljes összeget, amely minden háztartásra 45 ezer eurós terhet rótt volna. Olafur Ragnar Grimsson elnök az eredmények ismertté válását követően úgy nyilatkozott, hogy a többi országnak és a nemzetközi szervezeteknek tiszteletben kell tartaniuk az izlandi nép akaratát. Az Egyesült Királyság és Hollandia ugyanakkor jelezte, hogy bírósághoz fordulnak. Eközben az Európai Szabadkereskedelmi Társulás Felügyelő Hatósága már eljárást is indított Reykjavík ellen. Euvonal ---------- Netherlands: 'No way now for Iceland to join EU' Link

Bulgaria, EU 'Demographic Bailout', and the New Frontier

Bulgaria has just become the first EU member state to have conducted a population census in 2011. The census results have expectedly revealed the scope of Bulgaria's demographic catastrophe – the country's population is declining rapidly, aging rapidly, and continuing to emigrate at a steady rate. Actually, in some ways the census results were better than expected – to the extent that any silver linings can be seen when a country's population declined from 7.9 million to 7.3 million in just 10 years. Examples of those are that Bulgaria's population hasn't gone below 7 million yet, and that there has been a notable increase in the birthrate over the past decade. So the "good news" is that Bulgaria's demographic situation is "only" apocalyptic while many had predicted it would be "hopeless." Of course, there is a really fine line between the two, if any.

(...)

Because the demographic collapse of Bulgaria is rapidly, though not ostentatiously enough, becoming an EU problem. If unchecked, the worsening demographic situation not just in Bulgaria but also in some other parts of the European Union - most notably the Baltic states and parts of Central Europe - is bound to create or exacerbate (international) conflicts that can threaten the stability and prosperity of the entire EU. That is why the emerging or already clearly visible demographic ordeals in parts of the EU must become the catalyst for unprecedented policies and measures on part of the European Union that can only be described as "EU demographic bailouts."

(...)

There is at least one more spot in the EU where the demographic collapse can cause international trouble – the Baltic states, especially Estonia and Latvia, with their declining populations and sizable ethnic Russian minorities. Many of the ethnic Russians in these countries reside there as "recognized non-citizens" refusing to accept local citizenship; their situation has been a grudge that Russia has been holding against the EU for more than a decade. Bulgaria and the Baltic states are not the only ones facing tough demographic realities in the EU. CIA World Factbook figures indicate that in 2010 compared with 2002 the population of Estonia declined by -8.9%, Latvia -6.4%; Bulgaria -6.2%, Romania -1.7%; Lithuania -1.6%; Hungary -0.9%, Poland -0.5%. Germany's population also declined by 2% and most Western European states are struggling with falling birthrates, their populations going up only thanks to the influx of immigrants.

Link

Portugal requests EU financial aid

Portugal's caretaker government said on Wednesday it had decided to seek financing from the European Union in an abrupt turnaround after resisting a bailout for months despite sharply deteriorating financial conditions.

The nation of 10.5 million became the third member of the euro zone to seek a rescue after Greece and Ireland after months of fending off market pressure to request assistance, as borrowing costs soared amid deepening political instability. Prime Minister Jose Socrates said in a televised statement that parliament's rejection of additional austerity measures last month had aggravated the financial situation, ultimately making the request for aid "inevitable."

(...)

Socrates cited no figure but a euro zone official estimated Lisbon is likely to need between 60 and 80 billion euros in European and International Monetary Fund loans over three years. Any assistance will be subject to strict conditionality.

(...)

EU officials have been striving to prevent financial market contagion spreading beyond Portugal to affect larger economies such as Spain, which has undertaken major economic reforms, budget cuts and a banking clean-up to stay out of danger.

Portugal has implemented a series of spending cuts, tax rises and wage curbs and the government proposed further measures to reduce the public deficit to 4.6 percent of gross domestic product this year after missing last year's 7.3 percent target. Following a restatement of public accounts, the 2010 deficit came in at 8.6 percent.

Socrates' caretaker government said last week it lacked the constitutional authority to negotiate an economic adjustment program with the EU and IMF, raising a potential obstacle to an early deal. The prime minister said he had made the request within the limits of his caretaker role.

Reuters

Az Euró Plusz Paktum

"Six-pack" jogszabálycsomag elemei:

1) A Stabilitási és Növekedési Paktum prevenciós ágának jogi alapját (1466/97/EK rendelet) módosító rendelet: A Stabilitási és Növekedési Paktum prevenciós ága azt hivatott biztosítani, hogy az Európai Unió tagállamai a kedvező időszakokban megfontolt költségvetési politikát folytassanak, s ezáltal megfelelő tartalékot halmozzanak fel a kedvezőtlen időszakokra. A kedvező időszakokban eddig tanúsított engedékenységgel szakítva az államháztartás felügyelete a jövőben a költségvetési politika megfontolt kialakításának új elvét fogja követni, amely a középtávú célkitűzés felé való konvergálást hivatott biztosítani. A Bizottság figyelmeztetést bocsáthat ki, ha az euroövezet tagállamai jelentősen eltérnek a megfontolt költségvetési politikától.

2) A Stabilitási és Növekedési Paktum korrekciós ágának jogi alapját (1467/97/EK rendelet) módosító rendelet: A Stabilitási és Növekedési Paktum korrekciós ága a költségvetési politikák súlyos hibáinak kiküszöbölésére szolgál. A rendelet annyiban módosul, hogy az adósságállomány alakulását az eddiginél szorosabban figyelemmel kísérik, és az a hiány alakulásával egyenlően esik latba a túlzott hiány esetén alkalmazandó eljáráshoz kapcsolódó döntéshozatalkor. A GDP 60%-át meghaladó adósságállománnyal rendelkező tagállamoknak lépéseket kell tenniük, hogy adósságukat elfogadható ütemben csökkentsék, ami az elmúlt három évben mért 60% fölötti rész huszadrészével való csökkentésnek felel meg.

3) Rendelet az euroövezet költségvetési felügyeletének hathatós érvényre juttatásáról: A Stabilitási és Növekedési Paktum prevenciós és korrekciós ágában bekövetkező változásoknak az euroövezet tagállamaira alkalmazandó új, többlépcsős szankciórendszer ad nyomatékot. A prevenciós ágon a költségvetési politika megfontolt kialakításától való jelentős eltérés kamatozó letét elhelyezésének kötelezettségével járna. A korrekciós ágon pedig a GDP 0,2%-ának megfelelő nem kamatozó letét elhelyezésére köteleznék azon országot, amelyre nézve túlzott hiány fennállásáról szóló határozat születik. A letét bírsággá alakulna át, ha az érintett ország nem teljesíti a túlzott hiány kiigazítására irányuló ajánlást.

Felmerült, hogy a jog érvényre juttatása érdekében e szankciók kapcsán „fordított szavazás” kerüljön alkalmazásra, vagyis a szankcionálásra irányuló bizottsági javaslat elfogadottnak minősülne, hacsak a Tanács azt minősített többséggel el nem veti. A letétekből és bírságokból származó kamatokat az euroövezet azon tagállamai között osztanák fel, amelyek sem túlzott hiánnyal, sem túlzott egyensúlyhiánnyal nem rendelkeznek.

A változások kialakítása megkönnyíti az áttérést egy olyan jogérvényesítési rendszerre, amely – a Bizottság június 30-i közleményével összhangban – az uniós költségvetéshez kapcsolódik.

4) Új irányelv a tagállamok költségvetési keretére vonatkozó követelményekről: Mivel a költségvetési politika kialakítása decentralizált, a Stabilitási és Növekedési Paktum célkitűzéseinek meg kell nyilvánulniuk a nemzeti költségvetési keretekben, vagyis a nemzeti költségvetés kialakításának alapját képező elemekben (könyvelési rendszerek, statisztikák, előrejelzési gyakorlatok, költségvetési szabályok és eljárások, költségvetési kapcsolatok más kormányzati egységekkel, például a helyi és a regionális önkormányzatokkal). Az irányelv rögzíti a tagállamok által betartandó minimális követelményeket.

5) Új rendelet a makrogazdasági egyensúlyhiányok megelőzéséről és korrekciójáról: A túlzott egyensúlyhiány esetén követendő eljárás új elem az uniós gazdaságfelügyelet keretén belül. Ennek része az egyensúlyhiányokban rejlő kockázatok rendszeres időközönkénti értékelése egy gazdasági mutatókból álló eredménytábla alapján. A Bizottság erre támaszkodva a kockázatnak kitett tagállamok esetében mélyreható felülvizsgálatot indíthat a háttérben álló problémák feltárására. Azon tagállamok esetében, amelyek egyensúlyhiánya súlyos vagy a GMU működését veszélyezteti, a Tanács ajánlásokat fogadhat el és „túlzott egyensúlyhiány esetén követendő eljárást” indíthat.

Az eljárás alatt álló tagállamnak korrekciós intézkedési tervet kell benyújtania. A Tanács azt megvizsgálja, és megszabja a korrekciós intézkedés határidejét. A korrekciós intézkedés megtételének többszöri elmulasztása esetén az euroövezet szóban forgó tagállama szankcióknak teszi ki magát (lásd a következő pontot).

6) Rendelet az euroövezetben jelentkező túlzott makrogazdasági egyensúlyhiány korrekciójára irányuló jogérvényesítési intézkedésekről: Hasonlóan a költségvetés vonatkozásában előírtakhoz, ha valamelyik euroövezeti tagállam több ízben nem tesz eleget a túlzott egyensúlyhiány esetén követendő eljárás keretében kibocsátott tanácsi ajánlásoknak, GDP-je 0,1%-ának megfelelő éves bírságot tartozik fizetni. A bírság kivetése csak minősített többségű szavazással („fordított szavazás”, lásd fentebb) állítható le, s e szavazáson csak az euroövezet tagállamai vesznek részt.

Europa Press Rapid

---------------------

Az Euró Plusz Paktum célja, hogy kiegészítse a Stabilitási és Növekedési Paktumot, illetve az EU hivatalos közös gazdaságpolitikáját, az Európa 2020 stratégiát olyan módon, hogy a nemzeti gazdaságpolitikai célok ne kerüljenek ezekkel összeütközésbe. A Paktumnak az a célja, hogy a tagállamok a saját hatásköreiket úgy gyakorolják, hogy egyeztetnek egymással, és saját, nemzeti döntéseikkel ne hátráltassák, hanem segítsék közös céljaik megvalósítását.

A versenyképességi fejezet gerincét Németország sikeres versenyképességi programja inspirálta, és elsősorban a bérpolitikára koncentrál. A tagállamok azt fogják nyomon kísérni, hogy a bérek a termelékenységgel összhangban változnak-e, vagyis a béremelkedések mögött tényleges többlet-teljesítmény van-e. A versenyképességgel kapcsolatos legfontosabb vállalások azok, hogy a kollektív béralku nemzeti hagyományait is figyelembe véve a tagállamoknak meg kell próbálniuk megakadályozniuk a többlet-teljesítménnyel nem alátámasztott bérnövekményeket, és meg kell nehezíteniük az automatikus béremelések (pl. inflációs indexálás) rendszerét.

Bár a Paktum az innováció fejlesztését, a bürokrácia csökkentését is előírja, alapvetően a bérpolitika terén fogalmaz meg sarkos kötelezettségeket. A tagállamoknak különösen figyelniük kell arra, hogy a közszférában, ahol az állam állapítja meg a béreket, a béremelések növelése ne legyen magasabb a piaci bérnövekedésnél.

A felelős állami költségvetések területén az Euró Plusz Paktum két újdonságot hoz a résztvevő tagállamoknak. Egyrészt az Euró Plusz Paktum lényegében kiegészíti a maastrichti mutatókat egy ötödik mutatóval, a fenntarthatósági réssel, ami azt fogja mérni, hogy a tagállamok nyugdíjrendszerei, az egészségügyi és segélyezési rendszerek milyen hatással lehetnek a költségvetésre.

További jelentős újítás, hogy a Stabilitási és Növekedési Paktumot a tagállamoknak be kell építeniük saját alkotmányukba vagy alaptörvényeikbe, és nemzeti szinten is kikényszeríthetővé kell tenniük azt.

Euractiv

-------

A versenyképességi csomag elemei:

1, bérpolitika a termelékenység alapján

2, foglalkoztatás növelése

3, állami költségvetések fenntarthatósága (nyugdíjrendszerek, egészségügy, szociális ellátások)

4, pénzügyi rendszer stabilitása

5, adópolitikai koordináció

Euro-plus paktum

Az Euro-paktumhoz csatlakozik Bulgária, Románia, Lengyelország, Lettország, Litvánia és Dánia. Parlamenti támogatás hiányában az euro pact minus csoportba kerül Svédország, az adókedvezményeit féltő Csehország és Magyarország valamint a fiskális függetlenségére kényes Egyesült Királyság.

Az Euro-plus paktum országai kötelezettséget vállalnak arra, hogy a gazdasági kormányzás megerősítését célzó hat jogszabálycsomagot végrehajtják.

--------- A Stabilitási és Növekedési Egyezményben előírt kötelezettségek közül eddig főleg a költségvetési hiánycél betartására törekedtek, miközben háttérbe szorultak az államadósságra vonatkozó szabályok, ami kevéssé hitelessé tette az egész rendszert. Ami az államadósság mértékét illeti, korábban a Bizottság és a Tanács elnézte, ha a tagállamoknak a GDP arányában meghatározott államadóssága tartósan jóval 60 százalék fölé emelkedett. Az új javaslatok az eddiginél szigorúbban megkövetelik az adósságcsökkentést, például – egyéb releváns tényezők figyelembevétele mellett – bevezetik az úgynevezett 1/20-os szabályt. Ez azt jelenti, hogy ha egy ország államadóssága átlépi a 60 százalékos határt, akkor azt évente olyan mértékben kell csökkentenie, amely megfelel az államadósságnak a GDP 60 százalékát meghaladó része 1/20-ának, például 80 százalékos adósságráta esetén évente 1 százalékponttal.

Az államháztartással kapcsolatban az új szabályozás erősíteni kívánjak a megelőző jelleget. Arra ösztönzi a tagállamokat, hogy középtávon az államháztartási egyensúly elérésére törekedjenek. Így az egyensúlytól való távolodás pénzügyi szankciókat vonna maga után akkor is, amikor a hiány még nem lépte át a GDP 3 százalékában meghatározott felső határt.

Az államháztartási folyamatok ellenőrzése mellett külön jogszabály készül a makrogazdasági egyensúlytalanságok nyomon követéséről és elhárításáról. A javaslat értelmében monitoring rendszer épül ki a külső és belső egyensúlytalanságok figyelésére, és amennyiben bebizonyosodik, hogy ilyen helyzet állt elő, a Tanács az érintett tagállamot felkéri, hogy készítsen programot a probléma kezelésére, majd számon is kéri az intézkedések végrehajtását.

A költségvetési tervezésre vonatkozó legjobb európai gyakorlatok átvételét is előírja a csomag egyik jogszabálya, 2013 végi határidővel. A költségvetési tervezési folyamat átláthatóságáról van szó, és arról, hogy a tagállamok büdzséiben legyen középtávú kitekintés is. --------------

Megállapodás az állandó stabilitási mechanizmusról

Az ESM 500 milliárd euró tényleges hitelezési képességgel rendelkezik majd. A tagállamok által biztosított 700 milliárd eurós alaptőkéből 620 milliárd euró az előzőleg megállapított lehívható tőke és az eurózóna tagállamai által nyújtott állami garanciavállalás kombinációja lesz, míg a fennmaradó 80 milliárd eurót készpénzben fizetik be az országok. Megegyeztek arról is, hogy azok a tagállamok, amelyekben az egy főre eső GDP nem éri el az uniós átlag 75 százalékát, az eurócsatlakozást követő 12 éves időszakra kedvezményt kapnak, így átmenetileg kevesebb hozzájárulást kell majd befizetniük.

Addig is, amíg az ESM működni nem kezd, a tagállamok garantálják a 2010-ben ideiglenesen létrehozott EFSF 440 milliárdos hitelezési kapacitását.

Euvonal

EU Nuclear Tests

European Union energy ministers predicted it would take months to start EU-wide nuclear “stress tests” as Germany led a push for stringent common rules and said national leaders must tackle the matter later this week. The energy ministers from the 27-nation EU said checks on the region’s 143 atomic plants following Japan’s nuclear accident would probably get under way in the second half of this year on a voluntary basis. The tests may cover threats from earthquakes, floods, airplane crashes and terrorists as well as reactors’ cooling systems and their age, said EU officials. “I’m not sure that all countries will proceed in as demanding a manner as we have planned in Germany,” German Economy Minister Rainer Bruederle, who also handles energy policy, told reporters in Brussels after the emergency EU meeting. He said his support for mandatory European tests failed to win the backing of some participants.

German Chancellor Angela Merkel has urged uniform standards across the EU and said she will raise the issue at a March 24-25 meeting of the bloc’s leaders. She decided last week that Germany will keep its seven oldest nuclear reactors offline as part of the nationwide safety review to run through June. Merkel’s Christian Democratic party dropped votes and the Greens doubled their support yesterday in the first electoral test of Germany’s response to Japan’s accident. The vote in the eastern state of Saxony-Anhalt was the second of seven German regional ballots this year.

EU Energy Commissioner Guenther Oettinger said the bloc must come up with a checklist reflecting the concerns of European and national authorities, including in countries that don’t produce atomic energy. Oettinger, Bruederle and Hungarian National Development Minister Tamas Fellegi recommended that non-EU nations bordering the bloc such as Switzerland and Turkey also be involved in the tests.

“We should aim to have this assessment under way before the end of the year,” said Fellegi, who chaired the energy meeting because Hungary holds the EU’s rotating presidency. “We should avoid any hasty decisions.” Bloomberg

Eurozone agrees pact in principle

Sarkozy and Kenny draw swords as eurozone agrees pact in principle

Eurozone leaders meeting in Brussels have agreed on the broad outlines of the document formerly known as the 'Pact for Competitiveness' and subsequently watered down and rebranded a 'Pact for the Euro'. But even as the lines were being firmed up, French President Nicolas Sarkozy and Irish Prime Minister Enda Kenny drew swords over corporate taxation levels.
According to EU diplomats describing the heated exchange, as the Irish leader kept pressing for a reduction in the interest rate charged on the country's international loan, his French counterpart at one point reportedly snapped: "So we're supposed to give up millions and you're not even willing to talk about taxes?" Mr Sarkozy wants to see language referring to "distortive taxation rates" in a declaration by EU Council President Herman Van Rompuy following a eurozone summit in the European capital.
Dublin for its part, is looking for a one percent reduction on the 5.8 percent rate that is charged on the EU portion of an €85 billion joint EU-IMF loan. The rate is roughly three points higher than the bloc's borrowing costs, a 'margin' Brussels charges as a punitive measure to dissuade others from requesting a bail-out.But economists and Irish officials say the rate will make reducing Ireland's debt pile in the years to come impossible.
Beyond the scrap between Ireland and France's leaders, another EU diplomat told EUobserver all the leaders are "Pretty much at each others' throats. Once one leader raises one issue, it sparks an attack from another leader on another issue." "11 March was always going to be too early for them to reach any consensus."

Elements of euro pact agreed
A fresh, watered-down version of the proposals, renamed a 'pact for the euro', have now however in principle been agreed. Proposals from commission chief Jose Manuel Barroso and Van Rompuy reworking an earlier Franco-German 'Competitiveness Pact' had contained a laundry list of liberalising demands, including wage restraint across the eurozone; limiting public service spending; constitutional changes limiting government borrowing; raising retirement ages and moving away from labour-based taxation towards consumption-based taxation.
The new euro pact says that a constitutional 'debt brake' is just an example of what can be done; pension adjustments would be optional. 'Adjustment' rather than abolition of wage indexation would now be performed "where necessary".
Earlier demands "to enhance decentralisation in the bargaining process," have since been replaced with slightly more moderate wording that would see reforms to "adjust the wage-setting arrangements, notably the degree of centralisation in the bargaining process."
Leaders have also agreed that there will be a "structured discussion on tax policy" and a common co-ordinated tax base could be among the measures employed to improve the competitiveness of the EU in relation to its leading trade partners.
Countries remain far apart on the flexibility of how EU rescue mechanisms will operate, with no agreement yet on suggestions that both the EFSF and its permanent replacement from 2013, the European Stability Mechanism, be allowed to buy bonds itself as the ECB is currently doing, or let its loans be used for governments to buy debt back on primary or secondary markets, allowing a less disruptive form of restructuring to take place. There is also a proposal that the EFSF and ESM provide credit lines to troubled countries.
There was also no agreement on Friday on an expansion of the effective lending capacity of bail-out funds or on a series of six proposed directives on economic governance first put forward by the European Commission last September.
Non-euro EU states, such as Sweden, Denmark, the UK, and Poland, will be invited to join the pact at the European Council of 24-25 March

Greece wins eurozone concessions, Ireland rebuffed
Greece has won a reduction of 100 basis points - one percent - in the interest rate it pays on its €110 billion loan and an extension of the payment period from the current three and a half years to seven and a half. Ireland was offered a similar reduction, but the country's new prime minister said he could not accept the terms demanded.

In return for Greece's concessions, Athens has committed to a detailed fire-sale privatisation programme worth some €50 billion. A similar 100-basis-point reduction on the rates Ireland pays on its €85 billion loan was also dangled in front of Prime Minister Enda Kenny, but the quid pro quo demanded by core eurozone countries was that Dublin agree to a common tax base for the single-currency area, a move that the taoiseach has described as "tax harmonisation through the back door."

Euobserver

Az EP elfogadta Járóka javaslatát az uniós romastratégiáról

Megszavazta az Európai Parlament a romák európai integrációjának uniós stratégiájáról szóló állásfoglalást. Az elnökség üdvözölte, hogy a jelentés a romák társadalmi felemelkedését állítja középpontba, kiemelt hangsúlyt helyezve a szegregáció háttérbe szorítására.
Az EP várakozásai szerint a dokumentum lesz az alapja annak a keretjogszabálynak, amelyet április elején tesz közzé az Európai Bizottság, és amely a később kidolgozandó nemzeti integrációs programok kerete lesz.
Ahhoz, hogy előrelépést tudjunk tenni, meg kell szabadulnunk a sztereotípiáktól, az általánosításoktól és előítéletektől. Tudatában kell lennünk annak, hogy a romák életfeltételei korántsem egyformák mindenütt” – mondta Balog Zoltán társadalmi felzárkóztatásért felelős államtitkár a március 8-i parlamenti plenáris vitában a Járóka-jelentés kapcsán, melyet nagy többséggel fogadtak el az Európai Parlament képviselői tegnap (2011. március 9.).
A vitában Hannes Swoboda, a Szocialisták és Demokraták Progresszív Szövetsége (S&D) Európai Parlamenti Képviselőcsoportjának alelnöke is üdvözölte a jelentést. „A magyar elnökség biztos lehet abban, hogy ez a magyar elnökség egyik sikere lehet” – mondta, és hozzátette, hogy az S&D frakció visszavonja alternatív indítványát és támogatja a Járóka-jelentést.
A megszavazott parlamenti állásfoglalás javaslatokat fogalmaz meg a jövendő uniós romastratégia szerkezetére. A képviselők zöme a tervezet vitájában úgy vélekedett, hogy nem egyszerűen csak európai keretet kellene adni a tagállamok különböző romaintegrációs stratégiáinak, ahogy a Bizottság elképzeli, hanem egy egységes és önálló, bizonyos elemeiben kötelező erejű stratégiát létrehozni.

Euvonal
Link

Estonians re-elect their government

Prime Minister Andrus Ansip's centre-right coalition may become the first Estonian government since the country's independence in 1991 to serve a second term. According to the preliminary results of the 6 March elections, Mr Ansip's Reform Party won 28.6% of the vote (33 seats) while his coalition partner, Pro Patria/Res Publica Union, received 20.5% of the vote (23 seats). The combined 56 seats would constitute a solid majority in the 101-seat Riigikogu, Estonia's Parliament.

Informal Meeting of EU Defence Ministers

European Union defence ministers welcomed the start of the evacuation of EU citizens from Libya. Although the issue was not originally on their agenda, EU defence ministers discussed it with NATO’s Secretary General, at their informal meeting in Gödöllő, on 25 February 2011, and the EU’s High Representative said that sanctions should be considered against Libya.
Inexpensive but efficient defence
Long-term planning calls for broader cooperation in the EU’s common security and defence policy. The defence ministers discussed this and similar issues. Member states backed the principle of pooling and sharing defence capabilities, which could be an innovative solution to improve efficiency while cutting cost.
The EU has already discussed the issue at several forums, most recently, at an expert conference, which was organised by the Hungarian Presidency in Budapest. Addressing the informal meeting in Gödöllő, Catherine Ashton said the EU will look at ways to fine-tune pooling and sharing, based on member states’ needs.

“The negative effects of the economic crisis, have highlighted the need to use the existing European resources in a more cost-effective, coordinated and organised manner,” Minister of Defence, Csaba Hende, said in an expert seminar, on the current issues of the EU’s capability development on 3 February. Roughly, 150 representatives from 27 member states gathered in the Stefánia Palace in Budapest, to discuss the possibilities of the proposal.

The incidents in the immediate neighbourhood of the EU’s southern states in the past weeks have highlighted the region’s security challenges are not decreasing, but increasing; which makes cooperation more important than ever.
The pooling and sharing of defence capabilities are different types of defence cooperation where military capabilities are developed or maintained together or one country specializes herself in a capability area. The Hungarian Presidency’s goal is to popularise this innovative use of capabilities among member states in this semester. This was a major subject at the informal meeting of defence directors in Budapest, at the end of January 2011, and the Presidency proposed it to be a topic at the Meeting of Defence Ministers in Gödöllő, in late February.
Mr Hende said, “Hungary is in a special situation, as the Presidency must carry out its tasks in the new institutional environment created by the Lisbon Treaty. Therefore Budapest is holding an irregular, “supportive presidency”, carrying out its duties not in competition with the High Representative of the Union for Foreign Affairs, and Security but with her guidance.”

After the speech of the Minister for Defence, the most renowned European experts, and researchers of the field, gave presentations in three sections. The morning session revolved around the theoretical background of the pooling and sharing method. The speakers included Hilmar Linnenkamp, former deputy chief executive of the European Defence Agency (EDA), and Jon Mullin, the current capabilities director of EDA.
The speakers agreed that the pooling and sharing method is the main theme of current European defence policy, but Nick Witney, former chief executive of EDA, said, “member states cannot afford to stop developing their military forces due to the economic crisis, and lack of interest. According to the expert, this will inevitably lead to Europe’s loss of significance in global politics.”
http://www.eu2011.hu/news/presidency-aims-more-efficient-organisation-eu-military-capabilities

New Irish government

Irish voters have punished the outgoing Fianna Fail-Green coalition government, handing a strong mandate to the centre-right Fine Gael party. The new government's immediate tasks will include tackling the country's economic mess and securing more favourable terms on a recent international bail-out.
Counting will continue in a number of outstanding constituencies on Monday (28 February), with 154 places in the Ireland's 166-seat parliament filled so far: 70 Fine Gael, 36 Labour, 18 Fianna Fail, 13 Sinn Fein, five United Left Alliance and 12 others.
Fianna Fail, which means "soldiers of destiny" in Irish, has governed Ireland for three of every four years over the past eight decades. But voters in Friday's elections took an axe to the party's standing after it presided over the worst economic crash in the state's history. The Green junior coalition party was completely wiped out, losing all six of the party's seats.
Incoming Fine Gael leader Enda Kenny who is set to become prime minister called the vote a "democratic revolution". His party, which is likely to fall six seats short of an overall majority, is predicted to form a coalition government with the centre-left Labour party, which enjoyed its best ever election results. A combination with Independent MPs is also a possibility.

Independent Senator Shane Ross who topped the poll in the Dublin South constituency said his strong support, the rise of a centre-left party and the collapse of Fianna Fail amounted to an "end of tribal politics in Ireland". Born out of Ireland's 1922-23 civil war, the conservative Fianna Fail and Fine Gael parties have dominated the country's political sphere since that date, reducing the importance of the left-right divide typically seen in other European countries.
The new Irish parliament is set to convene for the first time on 9 March, two days before eurozone leaders meet in Brussels to debate ways to reform the bloc's emergency lending fund.
An overhaul of the club's budgetary rules is also on the agenda, as are plans to boost the economic competitiveness of individual member states. Mr Kenny has indicated he will seek a reduction in Ireland's borrowing rate, together with compulsory "haircuts" on unguaranteed senior bank debt, as part of the overall package.
Germany has been a driving force behind the high interest rate attached to EU loans as a means of dissuading potential borrowers, but economists argue that the punitive rate and Ireland's low growth prospects mean the country's debt pile can only go up in the coming years.
Berlin is expected to request something in return from Dublin if it agrees to improved lending terms. Plans for increased eurozone competitiveness, currently being drafted by the staff of European Commission President Jose Manuel Barroso and European Council President Herman Van Rompuy, contain calls for member states to include a 'debt brake' but no provisions on increasing corporate taxation, reports the Financial Times.Ireland has so far resisted Franco-German calls to increase its 12.5 corporation tax, arguing it is key to the country's economic recovery.
Euobserver

Pact for Competitiveness

The abolition of salary indexation systems, greater harmonisation of member state corporate tax rates and an overhaul of national pension systems are among the measures contained in a Franco-Geman 'Pact for Competitiveness' for the eurozone, put forward at the EU summit on Friday (4 February). Other elements included the insertion of a "debt alert mechanism" into national constitutions, the mutual recognition of educational diplomas and the establishment of national crisis management regimes for banks. Details would then be thrashed out at a specially convened summit of eurozone leaders in March, together with an already-scheduled EU summit later in the month.
"We need to increase competitiveness and the yardstick should be the member state that is leading the way," Ms Merkel told journalists immediately prior to the lunch. Suggestions that Germany should increase salaries, potentially harming the country's competitiveness, have irked Berlin in the past. The German leader indicated that non-eurozone states will also be invited to sign up to the competitiveness pact if they wish.
Mr Sarkozy hailed the initiative as a major step forward. "France and Germany are working hand in glove to defend the euro," he told the joint briefing. The Franco-German "structural plan" was a way of boosting European competitiveness and ensuring the convergence of member state economies, he added.
The plans for enhanced joint governance of the 17-nation eurozone economy appeared to hit a hurdle almost immediately however, with Belgian Prime Minister Yves Leterme blasting them as being overly constrictive. "There must be more economic cooperation, but member states must be left the room to carry out their own policies," Mr Leterme said on arriving at the one-day summit, originally scheduled to discuss energy issues. "Each member state has its own accents, its own traditions. We will not allow our social model to be undone," he added.
Critics also hit out at the pact's intergovernmental nature, with little role for the EU's institutions envisaged. "We welcome the move towards greater economic governance as step in the right direction. However, the method being proposed will not provide the required result as it is purely intergovernmental," said the leader of the European Parliament's Liberal group, Guy Verhofstadt. "The only effective way of ensuring the discipline and objectiveness that is required, is through the Community method and with the empowerment of the Commission to act and set real sanctions."

Euobserver

EU leaders set deadlines for energy market

U leaders on Friday (4 February) agreed to set new deadlines for the completion of the bloc's internal energy market, linking up gas and electricity grids and consulting with the EU commission before doing bilateral energy deals with foreign suppliers. "The internal market should be completed by 2014 so as to allow gas and electricity to flow freely," the final conclusions read.
National governments are also invited to "accelerate work" on adopting technical standards for electric vehicle charging systems by mid-2011 and for smart grids and meters by the end of 2012.
The thorny issue of EU funding for cross-border energy infrastructure links, with net payers to the EU budget such as Germany keen on having just the private sector footing that bill, has been postponed until June, when the EU commission is due to come up with a list of projects which are "justified from a security of supply/solidarity perspective, but are unable to attract enough market-based finance."
In addition to pipelines and new foreign suppliers, "Europe's potential for sustainable extraction and use of conventional and unconventional (shale gas and oil shale) fossil fuel resources should be assessed."
Energy efficiency targets, "presently not on track", are also flagged up. The EU last year signed up to boost up its energy efficiency by 20 percent by 2020, for instance by streamlining standards for energy savings of buildings, transport and industrial processes. "As of 1 January 2012, all Member States should include energy efficiency standards taking account of the EU headline target in public procurement for relevant public buildings and services," the EU document reads.
On the external dimension of energy policy, EU member states are to inform the commission from 1 January 2012 "on all their new and existing bilateral energy agreements" with foreign countries. "The commission will make this information available to all other member states in an appropriate form, having regard to the need for protection of commercially sensitive information. The high representative is invited to take fully account of the energy security dimension in her work. Energy security should also be fully reflected in the EU's neighbourhood policy," EU leaders say.
Regarding Russia, accounting for up to 90 percent of the gas supplies in some eastern European member states, "work should be taken forward as early as possible to develop a reliable, transparent and rules based partnership with Russia in areas of common interest in the field of energy and as part of the negotiations on the post-Partnership and Co-operation Agreement process." EU climate change commissioner Connie Hedegaard welcomed the agreement and said it sends a very clear signal, that in spite of the economic crisis "there is a strong will to deliver on key tools to speed up Europe's transition into a resource-efficient, low-carbon society."

Euobserver

Irish government in tatters as coalition partners pull out

Irish Prime Minister Brian Cowen's government was in tatters Sunday after the junior coalition partners pulled out, in a move likely to spark elections even earlier than those planned for March 11.
Green Party leader John Gormley told a press conference in Dublin that "our patience has reached an end" after a week of political turmoil that resulted in Cowen quitting as leader of his ruling Fianna Fail party on Saturday. "Because of these continuing doubts, the lack of communication and the breakdown in trust, we have decided that we can no longer continue in government," Gormley said after talks with his party's national executive.
The move plunges Ireland into deeper chaos as it struggles to recover from a debt crisis that brought the economy to its knees and forced Dublin to accept an international bailout in November.
Parliament must still pass a finance bill comprising spending cuts and tax hikes which are seen as a pre-condition for loans worth 67 billion euros (90 billion dollars) from the European Union and International Monetary Fund. All the main parties are committed to getting the bill through before an election and Gormley said this had not changed.
AFP

Portugal's President Captures New Term

Portuguese voters elected Aníbal Cavaco Silva to a second term as president Sunday, in a message that they want political stability as the country tries to extricate itself from the European sovereign-debt crisis. The seasoned Social Democratic president—who is head of state, but doesn't run the government—is facing tough months ahead.
Amid concerns that Portugal won't be able to repay its debt, Lisbon has been under pressure from its European partners to take a bailout, a measure the government has denied it needs.
With nearly 100% of the votes counted, official results showed Mr. Silva won 53% of valid ballots cast, while Manuel Alegre from the Socialist Party was in second place, with 20%. The remaining votes were divided among four other candidates.
Mr. Silva, 71 years old, will start his second five-year presidential term under great pressure to maintain the political stability that has allowed Portugal to approve a harsh austerity plan and so far to avoid having to ask for outside help.
The minority government of Socialist Prime Minister José Sócrates managed to pass the 2011 budget, which included public-sector wage cuts, reductions in welfare benefits and tax increases, with the help of the Social Democrats, who abstained from voting after forcing the government to accept deeper spending cuts than originally planned. The budget aims to reduce the government's fiscal deficit to 4.6%of gross domestic product in 2011 from an estimated 7.3% of GDP in 2010.
Concern about the country's ability to repay its debt, following the crises that forced the Greek and Irish governments to accept help from the EU and the International Monetary Fund, has pushed the price Portugal has to pay to finance its deficit higher in recent months.If international financial markets continue to demand higher interest rates from Portugal, the country might also be forced to turn to the EU and the International Monetary Fund for help, despite Mr. Sócrates' insistence that won't be necessary.
Link

Elindult az első európai szemeszter

Az új gazdasági együttműködés elindításaként az Európai Bizottság 2011. január 12-én éves növekedési jelentést (Annual Growth Survey) adott ki, amelyben gazdaságpolitikai és költségvetési prioritásokat javasol a tagállamok számára.
Növekedés, versenyképesség, munkahelyteremtés
A magyar elnökség szerint a jelentés közzététele után azonnal meg kell kezdeni a tárgyalásokat, hogy az uniós állam- és kormányfők márciusi csúcstalálkozóján politikai iránymutatást fogadhassanak el. Az ezek alapján elkészítendő nemzeti gazdasági programok segíteni fognak abban, hogy Európa kilábaljon a válságból, visszanyerje versenyképességét, és beinduljon a munkahelyteremtés.

Az elnökség meggyőződése, hogy az új gazdaságkoordinációs mechanizmus minden tagállam közös érdeke, és a költségvetési fegyelem megerősítésén túl növekedésösztönző, egyensúlyteremtő intézkedésekre van szükség.

Szigorú költségvetés, egyensúly, stabil pénzügyi szektor

Az Európai Bizottság jelentése tíz pontba szedte az uniós országok számára javasolt gazdaságpolitikai intézkedéseket. Eszerint a növekedés alapvető előfeltétele a szigorú költségvetési fegyelem, a makrogazdasági egyensúly és a pénzügyi szektor stabilitása. A foglalkoztatás növeléséhez a munkavállalás vonzóbbá tételére, a nyugdíjrendszerek reformjára, a munkanélküliek foglalkoztatására van szükség. Emellett a Bizottság szerint megfelelő egyensúlyt kell találni a munkahelyek biztonsága és a foglalkoztatás rugalmassága között. A növekedés ösztönzése érdekében a jelentés javasolja az egységes belső piacban rejlő lehetőségek kiaknázását, a magántőke bevonását és a költséghatékony energiához való hozzáférés biztosítását.

A Bizottság szerint az európai félév meg fogja változtatni a tagállami kormányok gazdaság- és költségvetési politikáinak kialakítását. Ha a jelentésben megfogalmazott célok megvalósulnak, „Európa visszatérhet a gyors gazdasági növekedéshez és magasabb foglalkoztatási szinthez” – mondta José Manuel Barroso, a Bizottság elnöke.

Európai szemeszter

Az éves növekedési jelentés közzététele az európai szemeszternek vagy félévnek nevezett koordinációs ciklus kezdete. Ennek keretében a tagállamok a Stabilitási és Növekedési Egyezmény szabályai, illetve az Európa 2020 stratégia szerint összhangba hozzák a közös uniós célkitűzésekkel makrogazdasági és költségvetési politikájukat, valamint szerkezetireform-intézkedéseiket. Mindez fontos lépés az európai szintű gazdasági kormányzás irányába.

A gazdasági kormányzás megerősítését célzó európai félév eljárási rendjét a tagállamok 2010 szeptemberében hagyták jóvá. Az idei évtől kezdve a Bizottság minden januárban előterjeszti majd az Unió gazdasági helyzetét és a fő kihívásokat elemző jelentését, amely egyben ajánlásokat is tartalmaz a tagállamok számára. Az Európai Parlamentben és a Tanácsban egyaránt megvitatandó éves növekedési jelentés szolgál alapjául azoknak az iránymutatásoknak és következtetéseknek, amelyeket az Európai Tanács tavaszi ülésén fogad el, és amelyek nyomán a tagállamok áprilisban véglegesítik középtávú költségvetési stratégiájukat és nemzeti reformprogramjaikat.

A Bizottság 10 prioritása (1-3 stabilitás, 4-7 munkaerőpiaci reform, 8-10 növekedés beindítása):

1. Implementing a rigorous fiscal consolidation

2. Correcting macro economic imbalances

3. Ensuring stability of the financial sector

4. Making work more attractive

5. Reforming pensions systems

6. Getting the unemployed back to work

7. Balancing security and flexibility

8. Tapping the potential of the Single Market

9. Attracting private capital to finance growth

10. Creating cost-effective access to energy

Commission Survey
Euvonal

Belgium passes the EU Presidency flag to Hungary

Hungary took the rotating presidency of the Council of the European Union from Belgium during a spectacular evening ceremony held in the presence of 270 guests on 6 January 2011. Yves Leterme, acting Prime Minister of Belgium, and Viktor Orbán, Prime Minister of Hungary attended the ceremonial event hosted in the Cupola Hall of the Houses of Parliament (the seat of MPs as well as the government).
From 1st January 2011, it is going to be task of the Hungarian Presidency of the Council of the European Union to shape the issues on the agenda of the European Union in line with the interests of the 27 Member States. In order to maintain the course amidst its many obligations, the Hungarian Presidency has defined the topics that it considers to be of outstanding significance. The Hungarian Presidency wishes to work along four priorities during the first half of 2011. Beside this, it intends to keep in the focus point the human factor, as the basis for intelligent, sustainable and inclusive growth when dealing with all other issues ranging from the economy, through common policies to the issue of enlargement.
Growth and employment for preserving the European social model
The entire Union is defined by a period of economic rearrangement. The Hungarian Presidency will continue the process of consolidation. It is convinced that the key to success is in the future oriented growth strategy of the EU and in the reinforcement of economic policy coordination.
The Europe 2020 strategy wishes to improve or to preserve the living conditions of European citizens, therefore it has to have the creation of jobs and sustainable competitiveness in the focus. Thus the Hungarian Presidency wishes to improve the situation of small and medium enterprises, which are the drivers for job creation and also wishes to call the attention of Member States to the impact that demography and family policy can have on employment and economic growth. In the framework of the initiative to decrease poverty, the Presidency wishes to pay increased attention to the struggle against child poverty and will strive for tangible, European-level measures in the field of the integration of the Roma-people.
Stronger Europe
The internal policies of the EU are structured around three basic elements: food, energy and water. Therefore the Hungarian Presidency attaches great importance to strengthen policies in these fields, thereby also reinforcing Europe. The review of the Common Agriculture Policy, the definition of a common energy policy and a new area, the drafting of a European water policy all serve this purpose. Parallel to the debate on preserving water resources, the European strategy on the development of the Danube-region will also be adopted during the Hungarian Presidency. Hungary wishes to conduct a real and tangible debate on the afore-mentioned issues. This is indispensable in order to make sure that these policies that strength cohesion and solidarity between Member States provide a solid foundation for the next multi-annual financial framework of the Union.
Citizen friendly Union
The EU also has to deal with issues that have a direct relevance on the everyday lives of citizens. Thus Hungary intends to further the implementation of the Stockholm Program, to move forward the enlargement of the Schengen area to include Bulgaria and Romania in order to provide a free movement of people and to protect fundamental rights. Beside all these, it is the objective of the Hungarian Presidency to direct the attention of Member States to cultural diversity as a European value that needs to be protected. Cultural diversity will be a defining theme of cultural events during the Presidency.
Enlargement and neighbourhood policy
Hungary wishes to pay particular attention to taking the enlargement process further and to providing an integration perspective for the Western Balkans region. The Hungarian Presidency will do everything it can to conclude the accession talks with Croatia during the first half of 2011. It is also a priority objective to strengthen the Eastern dimension of the neighbourhood policy, in the framework of which, Hungary will host the second Eastern Partnership Summit in May 2011.
www.eu2011.hu

Estonia enters euro zone

IT WAS a moment the Estonian government - one of a line of liberal, pro-Western coalitions that have ruled the country since 1992 - had been awaiting for years.
At midnight on New Year's Eve, Estonia abandoned its post-Soviet currency, the kroon, in favour of the euro - its last remaining big policy goal since securing membership of the EU and NATO in 2004.

EEA-jelentés: nincs messze a 20 százalék

Az Európai Környezetvédelmi Ügynökség (EEA) múlt heti jelentése szerint az Európai Uniónak sikerült jelentős eredményeket elérnie a szennyezőanyag‑kibocsátás csökkentése és a megújuló energiaforrások alkalmazásának bővítése terén. Az EU kibocsátása az 1990-es évi kibocsátáshoz képest 17 százalékkal csökkent. „A jelentés közzétételének időpontja tökéletes, tekintve, hogy megkezdődtek a cancúni klímatárgyalások” – mondta Jerzy Buzek, az EP elnöke.

„A klímaváltozás kihat a polgárainkra: az ivóvíz minőségére, a táplálékra, amit megeszünk, a levegőre, mit belélegzünk. Nincs egyszerű megoldás. A jogalkotóknak, az üzletembereknek és a polgároknak együtt kell működniük. Többet kell tenni az éghajlatváltozás megfékezéséért. Az EU-nak meg kell felelnie a 30 százalékos CO2-csökkentési céljának, ahogy azt Európai Parlament múlt heti határozata megállapította”.
Link

Dublin unveils radical austerity programme

The Irish government has unveiled a far-reaching austerity package with sweeping cuts and tax hikes in an effort to meet the tough conditions of an €85 billion EU-IMF bail-out plan, an architecture of adjustment that will radically alter the very structure of how the country is run.

It is a plan that will hit every citizen and sector of the Irish economy, but will hit working people, students and low-income earners the hardest, a move that has already provoked both a deep fury from many but also a bitter resignation amongst others.

Key measures include a slashing of welfare benefits, a hiking and broadening of income taxes, a sharp increase in university fees, the imposition of property taxes and water charges. Dublin hopes to save €15 billion over the next four years, including €10 billion in cuts and €5 billion in new taxes and other sources of revenue. The shocking sums come atop a total of €14.6 billion in austerity measures introduced in the wake of the wider economic crisis.

...

"As Ireland is a small, open economy, our economic recovery will be export-led. This plan stimulates exports, increasing productivity and rebuilding competitiveness," the government said in a statement. The plan forecasts economic growth of 2.75 percent of GDP on average over 2011-2014, and hopes this will result in the creation of some 90,000 new jobs.

Dublin appears to have won the day against pressure from other EU member states and the commission that it hike its ultra-low corporation tax of 12.5 percent, calling the rate "a cornerstone of our industrial policy".

Acquiescing to an IMF demand that labour costs be slashed, pay for minimum wage earners will be reduced by a full 12 percent, higher than the 10 percent that had been predicted, from €8.65 an hour to €7.65.

Low-income earners have in recent years enjoyed considerable relief from income tax, with as many as 45 percent of employees not paying at all. This era has come to an end, with income tax from now on to be applied on all who earn over €15,300 a year, down from the current €18,300. The government hopes to raise an additional €1.9 billion this way.

VAT will also be jacked up a total of two percent, spread over the last two years of the four-year package, while water charges will be introduced by 2014.

Social welfare spending is to be lacerated by €2.8 billion and student 'registration fees' will climb from €1,500 to €2000, an adjustment of 33 percent. The figure is not as high however as had been feared, with early reports suggesting a doubling to €3,000.

The cuts in 2011 will be worth some four percent of GDP and over the four-year period, equivalent to a full 11 percent.

As part of the cuts to spending, public service staff levels will be reduced by 24,750 positions and salary adjustments, including a 10 percent pay cut and a new pension scheme for fresh hires, will shave off €1.2 billion in costs over the next four years.

Property owners will now be subject to a tax for the first time, to be initiated in 2012, and business owners will be slapped with a local services levy.

Euobserver

Lisbon 2010

“This summit was not as exciting as other summits because we basically agreed on everything.”

Obama on the EU-US summit in Lisbon

Ireland to request bailout package from European Unio

Ireland's Finance Minister, Brian Lenihan, is to recommend the debt laden country make a formal application for a bailout loan from the European Union and the IMF. He gave no indication of how much will be needed but said it would not be a 'three-figure sum' - reports today have put figure needed as high as €120bn - but said it would be "tens of billions of euros".

A rescue from the EU, European Central Bank and International Monetary Fund has been wideley expected despite strong denials from Ireland. The recommendation will be made when the government meets later today to finalise a four-year plan to cut its budget deficit, he told RTE, the Irish broadcaster.

"The key issue is ensure we do not have a collapse of the banking sector," Mr Lenihan said in an interview. He acknowledged that Irish banks have become too dependant on ECB funds and had to be "weaned" a way from this funding. Mr Lenihan described the funding being applied for as 'a standby fund' and said not all of it would necessarily be drawn down.

Details of the bailout - or the conditions attached - will be the subject of discussion. However, the Irish government has been given a stark warning from some of the biggest American companies in Ireland on the risk of a mass exodus if the country's low corporation tax rate is raised.

Telegraph

Germany ups pressure on Ireland over business tax

Germany stepped up pressure on Ireland to raise its corporate tax rate on Tuesday with a senior finance expert in Chancellor Angela Merkel's party saying the Irish government could do so without hurting growth.

Dublin's 12.5 percent corporate tax rate, one of the lowest in the 27-nation European Union, has been a key part of its economic strategy and crucial to tempting big employers like Google Inc and Pfizer to Ireland.

Irish borrowing costs have surged in recent weeks and the country is now under pressure to ask the EU for financial assistance to help it cope with its fragile banks. It is unclear what kind of reforms the EU could demand in exchange for aid. But Michael Meister, a deputy leader in parliament and finance expert for Merkel's Christian Democrats (CDU), said the country needed to consider raising the levy. "The Irish rates are below the European Union average," Meister told Reuters on the sidelines of the CDU annual party congress in the southwestern city of Karlsruhe. "I therefore see here at least a possibility, given the high (Irish) budget deficit, to improve revenues without causing a negative impact on growth," he added.

The low rate is a source of irritation in some European capitals, including Berlin, which view it as unfair competition and there has been a real fear in Dublin that Europe would demand an increase. Meister's comments come one day after Elmar Brok, a senior CDU lawmaker who has sat in the European Parliament since 1980, said Ireland may have no choice but to raise the rate. "Ireland has two options to consolidate its budget -- cut expenses even further or increase taxes like the corporate tax rate," Brok said at the congress in Karlsruhe.

Ireland is relying on exports to help the economy grow by a forecast 1.75 percent next year and has repeatedly said it will not increase the rate it taxes the output of multi-nationals. A 2008 report by the Organization for Economic Cooperation and Development said that on average studies find that a one percentage point increase in the effective corporate tax rate leads to a 3.7 percent decline in foreign direct investment.
Reuters

Chinese premier pledges support for euro, EU trade

Link

EU agrees trade concessions to flood-hit Pakistan

The European Union has agreed to make trade concessions to Pakistan to help it overcome the impact of flooding, diplomats say. They say the deal could allow Pakistan significant reductions in duties paid on textile exports to EU countries.

Any move to grant Pakistan a waiver on textile duties would also require the consent of the World Trade Organisation (WTO) to ensure trade rules are not violated. The details will be determined in the coming weeks, with the European Commission working with the WTO to finalise how the concessions can be be implemented.

Meanwhile, some of the estimated 10 million Pakistanis displaced from their homes by the massive July monsoon floods have begun tentative salvage operations.

BBC

Orban Confirms Hungary Pledge to Meet European Union Budget Deficit Limit

Hungarian Premier Viktor Orban reiterated his Cabinet’s pledge to cut the budget deficit to no more than 3 percent of economic output in 2011 as the country braces for currency volatility.
“This year we can’t stretch further than 3.8 percent and for next year, I don’t suggest stretching further than 3 percent,” Orban said in a speech to Parliament, referring to the budget targets.

Hungary last week gave up a drive to raise next year’s deficit target, bowing to pressure from the European Union, which helped give a 20 billion-euro bailout ($26 billion) to the country two years ago. The government’s commitment to the target came after EU finance ministers told Hungarian officials during a meeting in Brussels last week that they had no other choice if the country wanted backing from the bloc, Economy Minister Gyorgy Matolcsy said on Sept. 8.

The Economy Ministry will submit the 2011 budget and future tax plans to the government in the middle of October, Matolcsy said today.

Bloomberg

EU expected to expand free trade agreements to South Korea

The European Union wants to expand its free trade agreements to include South Korea and is expected to reach an agreement between its trade ministers after the weekend.

The lifting of import tariffs would be a boost to the Korean automakers Hyundai and Kia Motors Corp. who are known for manufacturing low-cost vehicles.

The delay before the weekend and the objection to the free trade agreement comes primarily from Italy and its automaker Fiat Spa. Fiat fears unfair price competition if the import tariffs are lifted since the company operates in the same small to mid-size sedan market segment. The Italian automaker is also trying to carve out a niche in the US auto market now that it owns a 25% stake in Chrysler.

The free trade agreement would save EU exporters 1.6 billion euros and the exporters 1.1 billion annually based on all traded goods. The EU would benefit from the new free trade agreement as it would allow European exporters to more easily trade their goods in the South Korean market without specific standards or requirements.

examiner.com

Európai szemeszter

Az uniós országok pénzügyminiszterei jóváhagyták azt a javaslatot, mely szerint a jövő évtől kezdve minden tagállam még a nemzeti jóváhagyás előtt ismerteti a többi tagországgal költségvetési tervét.

A jövőre induló rendszer értelmében az Európai Bizottság jelentése alapján a tagállamok kormányait képviselő Tanács minden év elején meghatározza majd az unió előtt álló gazdasági kihívásokat, és stratégiai iránymutatásokat ad ezek leküzdéséhez. A tagországoknak ezt figyelembe véve április végéig szükség esetén módosítaniuk kell középtávú pénzügyi stratégiájukat, illetve nemzeti reformprogramjukat. Nyáron a tagállamok ugyancsak uniós iránymutatást kapnak a következő évre vonatkozó költségvetésükkel kapcsolatban. A rendszer - a miniszterek keddi brüsszeli üléséről kiadott közlemény szerint - lehetővé teszi, hogy fél éven át párhuzamosan figyelemmel kövessék a tagországok gazdaságpolitikáját, és időben kiderüljön, ha az eltérést mutat az uniós iránytól, illetve ha egyensúlytalanság van kibontakozóban.

Az uniós zsargonban európai szemeszternek nevezett új rendszert az EU-n belüli gazdasági együttműködés javításán dolgozó - Herman Van Rompuy EU-elnök vezette - munkacsoport dolgozta ki. A csoportot (amely gyakorlatilag a pénzügyminiszterekből áll) annak érdekében állították fel a tagországok állam- és kormányfői, hogy dolgozzon ki olyan szabályokat, amelyek lehetővé teszik a gazdasági válságok megelőzését, illetve könnyebb kezelhetőségét a jövőben. Van Rompuy a kormányfők október végi találkozóján számol be arról, milyen javaslatok születtek a munkacsoportban.

Sweden, Finland urge EU to open peace institute

Sweden and Finland are urging the European Union to create an independent peace institute to broaden the scope of the bloc's peacekeeping efforts around the world.

Swedish Foreign Minister Carl Bildt and his Finnish counterpart Alexander Stubb say an independent think tank could have better opportunities to help solve conflicts than traditional diplomacy. Their proposed institute would be modeled on the U.S. Institute of Peace, which is funded by the U.S. Congress but run by an independent board.

The ministers sent a letter with the suggestion to EU foreign policy chief Catherine Ashton on Friday. They said they hoped to get support from other EU member countries for the initiative.

EU, Euro Zone GDP posts fastest growth in four years

Gross Domestic Product in both the European Union and the Eurozone increased 1 percent during the second quarter of 2010, compared with the previous quarter, according to first estimates released by Eurostat. The figures show the EU and the Euro Zone have rebounded strongly as compared to the first quarter of the year. According to the statistical office of the European Union, growth rates in the first quarter of 2010 were 0.3 percent in both zones.

GDP growth in the EU and the euro common area was the fastest in four years, outstripping rivals United States and Japan. In comparison, the United States GDP increased 0.4 percent during the second quarter of 2010, after 0.9 percent rise in the first quarter of 2010. In Japan, GDP rose a nominal 0.1 percent in the second quarter of 2010, after 1.1 percent growth in the previous quarter.

Link

Germany and France lead way in 'two-speed recovery'

The economic recovery of the eurozone slightly lost its momentum in August, with most of the growth dependent on the performance of Germany and France, a purchasing managers' index survey published on Monday (23 August) showed.

According to the preliminary figures from Markit, a UK-based research firm, the eurozone composite output index, which measures activity across the private sector, including the manufacturing and services sectors, fell to a two-month low of 56.1 in August, down from 56.7 in July.

While the outcome of the whole single currency bloc is "solid," Markit wrote in a press release, there are "worrying divergences" between national economies, as growth is largely dependent on Germany and France.

"Growth in the rest of the euro area slowed to near stagnation, and services even contracted again as austerity measures bite," Chris Williamson, the company's chief economist said.

There is little evidence to suggest that buoyant business conditions from France and Germany "are spilling over to the benefit of the periphery," he added, noting that this could spell further divergence in the euro area's "two-speed recovery."

Flash estimates from the EU statistic office Eurostat, published on 13 August, confirmed Germany as a leader of Europe's economic recovery with a GDP growth rate of 2.2 percent in the second quarter of 2010, the best German result since re-unification in 1990. France's GDP increased by 0.6 percent, while Spain, Italy and Portugal each reported increases of less than 0.5 percent. The EU's overall growth was 1.7 percent.

Euobserver

Germany turbocharges EU economy

The strongest economic growth in Germany in two decades powered Europe's economic recovery ahead of the United States. The eurozone economy grew by 1 percent in the second quarter, its biggest quarterly expansion since the second quarter of 2006, the European Union's Eurostat statistics agency said Friday.

...

Beating all analyst forecasts, Germany's economy in the second quarter of 2010 grew by 2.2 percent compared to the first three months of the year, its fastest growth in two decades. In comparison with the same time last year, Germany's economy grew by 4.1 percent, the Federal Statistical Office said Friday.

Link

France proposes EU reaction force for natural disasters

French President Nicolas Sarkozy has called for the EU to set up a joint rapid reaction force to handle natural disasters such as earthquakes, wildfires and floods. In a letter to European Commission President Jose Manuel Barroso published on Sunday (15 August), Mr Sarkozy addressed the issue of the EU's ability to react under its own name in connection to the recent floods in Pakistan.

"It seems essential, for obvious political and humanitarian reasons, that Europe shows its solidarity with the Pakistani people visibly. The interest of Europe is also to ensure the development and stability of this country," he wrote. Following the earthquake in Haiti and wildfires in Russia, says the letter, the EU "must take the necessary measures and build a real EU reaction force ... that draws on the resources of the member states." France is to draw up proposals for the force in the near future, it adds.

Paris announced Sunday that a plane with 60 tonnes of humanitarian aid will be sent to Pakistan, with Mr Sarkozy saying France is prepared to use its Nato military forces to help transport the aid. France has already allocated €1 million to Pakistan since the start of the floods, which are estimated to have affected 20 million people.

Last Wednesday (11 August), the commission said it would provide Pakistan with €10 million in immediate emergency aid, in addition to €30 million allocated in July. EU foreign ministers are to also discuss a long term aid plan for Pakistan at an informal meeting in September.

With wildfire smog returning to Moscow over the weekend, Russia itself indicated it would be interested in joining a multilateral crisis response force. "The United States and the EU have now come to the same conclusion. I think we will come to this, and such capabilities will have to be established," he told the Ria Novosti news agency.

Euobserver Link

Slovakia: No Funds for Greece Bailout

Slovakia’s parliament rejected the nation’s participation in a loan for Greece, ending the European Union’s unity in handling the sovereign-debt crisis. The 69-1 vote, with 14 abstentions, reversed a decision by the previous Cabinet to lend Greece 816 million euros ($1.1 billion). Prime Minister Iveta Radicova's month-old government opposed the aid, saying poor countries shouldn’t pay for the profligacy of richer peers.

“The Slovak share is small, so it shouldn’t have much impact on the big picture,” said Timothy Ash, head of emerging markets research at Royal Bank of Scotland Plc in London. “On the other hand, the rejection is clearly a disappointment for the European Commission as Slovaks are thinking outside the box.”

Olli Rehn, the EU’s economic affairs commissioner, called Slovakia’s decision a “breach of the commitment” the previous government made as part of the so-called eurogroup of countries. “The eurogroup’s decision was a crucial act at a critical moment to safeguard financial stability of the euro area as a whole, including Slovakia,” Rehn said today in a statement. “I can only regret this breach of solidarity within the euro area, and I expect the Eurogroup and the Ecofin Council to return to the matter in their next meeting.”

Slovak Finance Minister Ivan Miklos has said EU fiscal rules should be changed to allow for the default of euro-member nations. Slovakia, the euro region’s poorest member by per- capita gross domestic product, was asked to pay too large a share of the Greek loan package, he said July 30.

“Many people in Germany and rich EU countries would have a lot of understanding for the Slovak position,” Ash said. “It shouldn’t be inevitable that every country gets a bailout.”

Earlier, lawmakers approved Slovakia’s participation in the European Financial Stabilization Facility, an entity that would sell debt secured by 440 billion euros in national guarantees and use the proceeds to provide loans to distressed euro-region members. Slovakia’s share in potential guarantees amounts to 4.4 billion euros.

Bloomberg

Megkezdődnek a csatlakozási tárgyalások Izlanddal

Az Európai Unió általános ügyekkel foglalkozó Tanácsa tegnap (2010. július 26.) zöld utat adott az Izlanddal folytatott tárgyalások megkezdésének – a skandináv ország csatlakozásáról szóló egyeztetések ma veszik kezdetüket egy kormányközi konferencia keretében.

Euvonal

Czech Fiscal Plans

The Czech Republic’s credit rating may be increased if the new government delivers on its promise to cut the budget deficit, Moody’s Investors Service said, pushing the koruna up as other east-European currencies fell.

The three-party government, named on July 13, has pledged to reduce the public-finance deficit to the European Union limit of 3 percent of gross domestic product by 2013, from the 2010 target of 5.3 percent. Moody’s rates the Czech Republic A1, its fifth-highest investment grade, with a stable outlook. “If we see a resumption of real convergence towards core Europe that could put upward pressure on the rating,” Dietmar Hornung, a senior sovereign-risk group analyst at Moody’s, said in a July 16 interview. “And if the fiscal plans were to be implemented as planned and result in stabilization” of debt ratios “that would also be reassuring.”

The deficit widened last year as the global economic crisis cut demand for Czech exports, including cars made by the local units of Volkswagen AG and Hyundai Motor Co., slashing tax revenue. The EU is increasing penalties on members that flout budget rules after Greece’s spiraling deficit undermined confidence in the euro.

The Czech Republic’s debt rose to 35.4 percent of GDP last year, from 30 percent in 2008, less than the 60 percent limit for joining the euro.

“The Czech Republic is acting as a stabilizing element in the region,” said Prague-based Raiffeisen Bank analyst Michal Brozka in a note to clients, referring to Hornung’s comments. The new government has 118 seats in the 200-member lower house of parliament, giving it the strongest majority since the country became an independent state in 1993. That creates “preconditions for removing the gridlock” that hampered efforts to overhaul government finances, Hornung said.

The Finance Ministry forecasts the economy will grow 1.6 percent this year and 2.3 percent in 2011, after a 4.1 percent contraction in 2009. The European Commission, the European Union’s executive arm, estimates the euro area’s economy will grow 0.9 percent this year and 1.5 percent in 2011.

Businessweek

European IT Research Gets €1.2 Billion From EU

The European Union is set to add €1.2 billion (US$1.5 billion) in funding for IT research in Europe, and about half the amount is earmarked for robotic systems, next generation network and service infrastructures, electronic and photonic components and digital content technologies.

Emphasis will be placed on technologies that address societal challenges such as climate change, energy and food security, health and an aging population, said Commissioner Máire Geoghegan-Quinn as she announced the new funding on Monday.

Link

A legbefolyásosabb tagállamok a 30 százalékos széndioxid-csökkentés mellett

Az Egyesült Királyság, Franciaország és Németország miniszterei együtt szólították fel az Európai Uniót, hogy emelje 30 százalékra a 2020-ra megállapított kibocsátás-csökkentési célt.

Az EU jelenlegi célszáma nem lesz elég a zöld innováció serkentésére és Európa versenyben tartására az ún. „tiszta” technológiák terén, nyilatkozta Chris Huhne, az Egyesült Királyság energiaügyi és klímaváltozásért felelős minisztere, Nobert Röttgen, a német környezetvédelmi miniszter és a francia környezetvédelmi miniszter, Jean-Louis Borloo a Financial Timesnak címzett levelükben.

Az Európai Unió 2008 végén fogadta el energia- és klímacsomagját, melyben azt vállalta, hogy 2020-ig 20 százalékkal csökkenti az üvegházhatást okozó gázok kibocsátását. Az EU három legbefolyásosabb tagállamának miniszterei első alkalommal fogtak össze, hogy az egyoldalú 30 százalékos cél mellett érveljenek.

„Ha a 20 százalékos célhoz ragaszkodunk, Európa valószínűleg elveszti a versenyt az alacsony széndioxid-kibocsátású [low-carbon] világban, olyan országokkal szemben, mint Kína, Japán, vagy éppen az Egyesült Államok, melyek mind vonzóbb környezetet próbálnak teremteni a low-carbon befektetések számára” – írták a miniszterek.

Ez az elmozdulás a német álláspont jelentős változását jelzi, Berlin korábban az EU hivatalos álláspontját támogatta, mely szerint a 30 százalékos kibocsátás-csökkentést csak akkor kellene megvalósítani, ha más iparosodott országok hasonló mértékű kötelezettségeket vállalnak az ENSZ tárgyalásokon az új klímaegyezmény tárgyalásai során.

A Bizottság májusban kiszámította, hogy a recesszió miatt a 30 százalékos csökkentés most csak 11 milliárd euróval kerülne többe, mint amire a tagállamok két évvel ezelőtt vállalkoztak, amikor a 20 százalékos célt megállapították. Connie Hedegaard klímavédelemért felelős európai biztos ugyanakkor úgy vélekedik, hogy a célszám emelésének most nem lenne értelme, mert szerinte a feltételek még nem megfelelőek ehhez.

Az európai üzleti körök vehemensen ellenzik a klímavállalások emelését, azzal érvelve, hogy ezzel versenyhátrányba kényszerítenék az uniós ipart. „Rossz jelzést küldene az európai ipar számára a gazdasági válság idején” – jelentette ki Jürgen R. Thumann, a Business Europe üzleti lobbi elnöke.

Euvonal