Crisis election changes political landscape in Spain

The Spanish conservative People's Party (PP) regained power and fringe groups did well in elections on Sunday (20 November). The PP as predicted won an absolute majority of 186 places in the 350-seat lower house - the best result in the history of the party.
The centre-left PSOE, in power since 2004, received just 110 seats - the worst result in the history of its party. Meanwhile, smaller parties doubled their collective seats to 54.
Euobserver

Agreement on EU budget 2012

The Council and the European Parliament reached an agreement on the budget for 2012 at their meeting in the Conciliation Committee on 18 November. The agreement limits the increase of payments to 1.86% compared to the 2011 budget. The two institutions agreed to curb the total amount of payments for the 2012 budget to 129.088 billion euros. This corresponds to 0.98% of the EU's Gross National Income (GNI) and represents an increase of 1.86% compared to the updated EU budget 2011.
The agreed payments increase remains below the latest Commission inflation forecast of 2% for the EU in 2012, in real terms corresponding to a reduction of the EU budget. The EU thus rallies to the important efforts made by member states to consolidate their national public finances.
To cope with unforeseen situations, the agreement secures an important margin (12.4 billion euros) below the payments ceiling of the multiannual financial framework (MFF). The MFF fixes maximum amounts for each broad category of budget expenditure for several years, currently 2007-2013. At the same time, the budget allows targeted expenditure to support measures in favour of growth and employment in order to prevent the EU from slipping further into crisis.
European Council

Berlusconi Expected to Resign as Debt Plan Passes

Marking the end of a tumultuous week and of an era in Italian politics, Prime Minister Silvio Berlusconi was expected to resign on Saturday evening after Parliament approved austerity measures sought by the European Union.
The lower house passed the measures on Saturday by a vote of 380 to 26, a day after they were approved by the Senate, trying to keep a step ahead of market pressures that sent borrowing rates on Italian bonds skyrocketing last week to levels that have required other euro zone countries to seek bailouts.
The end of Mr. Berlusconi’s 17-year hold on Italian politics sets off the country’s most significant political transition in 20 years.
President Giorgio Napolitano, who as head of state will oversee the transition, was expected to begin consultations with party leaders to nominate a prime minishttp://www.blogger.com/img/blank.gifter immediately after Mr. Berlusconi’s resignation.On Saturday, the president appealed to lawmakers to put the country’s interests above their own. “All political forces must act with a sense of responsibility,” Mr. Napolitano said.
The front-runner to guide a new government appears to be Mario Monti, 68, a former European commissioner and a well-respected economist with close ties to European Union officials. On Wednesday, Mr. Napolitano named Mr. Monti a senator for life, an unexpected move seen as a prelude to receiving the mandate to form a government.
The mandate of the next government will be to push through measures to help reduce Italy’s $2.6 trillion public debt and increase growth to keep the country competitive. The austerity measures approved by Parliament include selling state assets and increasing the retirement age to 67 from 65 by 2026. They would decrease the power of professional guilds, privatize municipal services and offer tax breaks to companies that hire young workers.
Link

Papademos sworn in

Technocrat Prime Minister Lucas Papademos took office on Friday to save Greece from bankruptcy, heading a coalition cabinet filled with many of the same politicians who led the nation into crisis and pushed the euro zone to the brink of collapse.
As politicians in Italy pushed through austerity measures and contemplated an emergency government to stave off the crisis creeping deeper into the euro zone, Papademos said his priority would be to meet the terms of the country's EU, IMF bailout and pull Greece out of recession. "The final result will depend much on whether we succeed in stabilising the real economy, reining in unemployment and setting the ground to revive the economy and gradually boost employment in a relatively short time," he told his governing team in its first meeting. "That's why I would like to ask everyone to do his best in the next coming days, weeks and months."
More...

EU needs smaller, deeper group-Germany's Fischer

European Union with 27 members is incapable of agreeing needed reforms and the time has come to think about forming a smaller group of nations to advance the cause before it is too late, former German Foreign Minister Joschka Fischer said.
"Let's just forget about the EU with 27 members -- unfortunately," Fischer said in an interview with the German weekly newspaper Die Zeit. "I just don't see how these 27 states will ever come up with any meaningful reforms."
Fischer, a strong pro-Europe voice in Germany as foreign minister from 1998 to 2005, said the EU was under threat at the moment because of the euro zone debt crisis and he criticised the German government for poor leadership."We've got the worst German government since 1949," he said, but added Germany was strong enough to cope with that.
"We've got to watch out that we don't lose Europe," he said. "At the moment there is a great risk of that happening. The continent will survive without the euro but it would then nevertheless be dead as a political and cultural project."
Fischer said an "avant-garde" of the 17 euro zone nations could effectively take away the power from the 27 states. He said the smaller group should form a tighter group, following the lead of the Schengen passport-free travel zone in the EU. "What we need now is a 10-point plan for Europe, for a political union," Fischer said, adding Europe was heading towards a "transfer union" in the future in which wealthier nations would provide assistance to the less prosperous. "Anyone who denies that is just lying to themselves," Fischer said. Germans are nevertheless overwhelmingly opposed to any system where wealthier countries are obligated to support the poorer states.
Fischer said a euro chamber was worth considering, a body in which leaders from the national parliaments would take part. They would thus hold dual national and European responsibilities, Fischer said. "So those who have a say in their parliaments back home can also have a say in Europe," Fischer said.
Reuters

National unity government in Greece

Greece’s two mainstream political parties have agreed on a narrow pact for a national unity government after intense pressure from the EU, which warned that the country would be left to go bankrupt, perhaps within days, if a cross-party consensus was not achieved.

The centre-left prime minister, George Papandreou, loathed by millions of his fellow citizens for the imposition of far-reaching spending cuts, is to step aside once the new administration is in place, although who is to replace him has yet to be decided.

The coalition is tasked with approving a €130 billion EU-IMF bail-out deal, the second the country has been saddled with in the past two years, a package that will ensure that it is able to avoid bankruptcy and pay its largely central European creditors in return for years of austerity measures and international supervision of its finances.

The new administration will comprise the governing social democrats of Pasok and the right-wing New Democracy party. Papandreou had earlier approached Laos, a far-right religious party in the parliament and the Democratic Alliance, a small free-market liberal breakaway from the conservatives, to shore up his 152-seat majority in the 300-member house.

On Sunday, EU economy chief Olli Rehn had made it clear that without a coalition government, Greece would be cast adrift. He gave the country’s political elite hours to come up with a deal, ahead of a meeting of EU finance ministers on Monday evening.

Talks on a national unity government came after a long drama played out in the Greek parliament on friday. Papandreu survived a confidence vote on his government after a contentious move to hold a referendum on the Greek rescue deal put together in Brussels last week.

Europe delivered a stark ultimatum to Greece on Wednesday night, demanding that the country’s planned referendum ask plainly whether the country’s citizens wish to stay in the euro or to get out. "The question is whether Greece remains in the eurozone, that is what we want. But it is up to the Greek people to answer that question," Sarkozy said, adding that Greece would not receive "a single cent" if it does not adhere to the bail-out plan agreed last week.

Following the European reactions Papandreou has backed away from holding a referendum on a €130 EU bail-out deal and has agreed to talks with the conservative opposition over the construction of a transitional government leading to early elections.

Source: Euobserver

La BCE a abaissé ses taux

La Banque centrale européenne a réduit le taux de refinancement de 0,25 point à 1,25%. Économistes et marchés espéraient un geste de la part de la BCE en faveur des pays en difficulté de la zone euro, mais pas forcément sur les taux dès ce mois-ci. Mario Draghi a cependant rappelé les conditions du programme de rachat d'obligations d'Etats, à savoir "temporaire, limité quant au montant et justifié par le rétablissement du fonctionnement de la transmission de la politique monétaire par ses canaux ordinaires", mettant fin ainsi aux spéculations sur un renforcement de ce programme.
A la surprise générale, la Banque centrale européenne (BCE) a abaissé jeudi son principal taux directeur à 1,25%, a annoncé l'une de ses porte-parole, contre 1,5% précédemment. La BCE a également abaissé de 25 points de base ses deux autres taux directeurs, à savoir le taux de dépôt au jour le jour, qui est désormais de 0,5% contre 0,75% précédemment, ainsi que son taux de prêt marginal, passé à 2% contre 2,25% auparavant.
Economistes et marchés espéraient un geste de la part de la BCE en faveur des pays en difficulté de la zone euro, mais pas forcément sur les taux dès ce mois-ci.
L'echo

Euro Summit 27.10.2011

EU leaders agree on measures to provide more support for countries with debt problems and restore financial stability to Europe.

The decisions made on 26 October are in response to the debt crises affecting some eurozone countries. These crises threaten to undermine economic stability in the whole currency area, and by extension other EU countries. ‘The package we have agreed is a comprehensive package that confirms that Europe will do what it takes to safeguard financial stability,’ said Commission president José Manuel Barroso.
1) More loans for Greece
A sustainable solution to help Greece recover includes a new loan of up to €100bn from the EU and the IMF. Banks and other private creditors have agreed to write off 50% of Greek debt. The package aims to help Greece reduce its public debt to 120% of gross domestic product by 2020.
2) Better crisis support
Leaders agreed to enlarge the EU’s main debt support fund, the European Financial Stability Facility (EFSF), without extending member countries' commitments. The fund’s lending capacity will be boosted to about one trillion euros – a fivefold increase – using private market tools.
3) Bank reforms
Governments will provide guarantees for banks affected by the sovereign debt crisis. These guarantees will be coordinated at EU level. They will allow banks to continue to provide the loans needed for growth and job creation. A temporary measure will require banks to increase their capital base to 9% by June 2012. Banks should reduce dividends paid to investors and bonuses to staff until they reach the 9% target. This recapitalisation will strengthen the banking system. Banks will first use private sources of capital, with national governments providing support if necessary. Loans can also be made through the EFSF, as a last resort.
4) Stronger economic governance
Eurozone countries also approved measures to improve economic governance. There will be more coordination of economic and national budget policies, along with increased monitoring to ensure the measures are implemented. The eurozone will seek closer economic integration. A report on implementing the agreed measures will be completed by March 2012.
Commission website

EU states to speed up austerity, embrace 'limited' treaty change

Leaders of the EU's 27 member states met on Sunday (23 October) with little fresh to show in the face of the biggest crisis in the bloc's history, but did back a "limited" change to the EU treaty to deliver stronger economic convergence amongst eurozone countries.
At the crisis meeting in the EU capital, the bloc's premiers and presidents agreed to speed up already-agreed-to austerity and structural adjustment measures and to seek new "growth-enhancing" measures, such as unifying the bloc's still-fragmented market in digital products and services and cutting regulations on small businesses.

But on the core issues of what leaders have described as a "comprehensive" package aiming to draw a line under the eurozone debt crisis - including how to leverage the bloc's rescue fund to a size that can protect Italy and Spain from contagion, and the scale of the write-down to be imposed on holders of Greek bonds - there was no agreement.
The president of the EU Council, Herman Van Rompuy, told reporters in a pause between the closing of a meeting of the full EU 27 chiefs and a smaller meeting of the eurozone's 17 leaders, that "good progress" was made, with the bulk of the discussion so far focussed on the issue of a recapitalisation of Europe’s banks.
It is understood that leaders have converged on a sum of €107 or €108 billion in a scheme for a second round of bank bail-outs. Under the plans, troubled financial institutions must first attempt to raise fresh cash from markets. If unable to do so, national governments will then have to provide back-stops. Only if governments are too weak to be able to perform this task will the eurozone's rescue fund, the European Financial Stability Facility (EFSF), step into the breach. However, no final agreement has been reached on bank recapitalisation, and details will only be released after a meeting of European finance ministers and a second pair of EU and eurozone summits - all of which will take place on Wednesday.

The leaders did back a "limited treaty change" that will involve tightening fiscal discipline and deepening economic union. "'Limited' means not a general overhaul of the architecture found in the Lisbon Treaty,” said Van Rompuy. "What is most important is not to change the treaty but to strengthen economic convergence," he said, adding however that such a change is "not a taboo." The leaders said in a joint communique "that any treaty change must be decided by the 27 member states" and not just the 17 in the eurozone. The leaders will take a decision on treaty change in December based on recommendations from President Van Rompuy and the chair of the eurogroup of states, Luxembourgish Prime Minister Jean-Claude Juncker.

A new fiscal discipline 'super-commissioner' in the euro area is also to be created. The leaders "welcomed" the idea of strengthening the powers of a commissioner with added competence of "closer monitoring and additional enforcement." This chimes with a proposal from the Netherlands in September that a commission could upon the support of a majority of eurozone countries make a heavily indebted state a "ward" of the EU executive, whereby all economic decisions would be taken out of the hands of the country concerned and vested instead in the super-commissioner. Finland, Germany and the commission have backed versions of the plan.

A completely new post is also to be created, that of "president of the Euro summit", which will be elected by euro-area premiers and president at the same time that the president of the European Council is appointed. The next such appointment is to take place mid-2012. Until then, the current president, Herman Van Rompuy, will play this role.

The summit chiefs are also exploring the possibility of a massive new fund alongside the zone's existing rescue mechanism, hoping to tap trillions from sovereign wealth funds owned by the likes of Norway, Singapore and China that could be used to purchase government debt from in troubled states.

The existing rescue outfit, the EFSF, would offer insurance up to around 20 percent against losses government bonds purchased by the new fund, or 'Special Purpose Vehicle', extending the firepower of the EFSF to as much as €1 trillion. Such a plan, involving investment via the International Monetary Fund with 'Brics' involvement - referring to the emerging powers of Brazil, Russia, India, China and South Africa - is "on the table", an EU official told this website.

Pressure piled on Italy

Immediately after the meeting of all 27 member states, the 17 countries in the euro area met to continue discussions. Following the eurozone meeting at a late night press conference, no fresh breakthroughs were announced. The two EU presidents told reporters simply that talks were advancing.

However, while Italy was not mentioned by name, in a pointed reference to the country, Van Rompuy said: “All member states need to give clear signals of their commitment" regarding public finances by Wednesday, “and this is understood by everybody.”

German Chancellor Angela Merkel and French President Nicolas Sarkozy held a brief but sharp private meeting with the Italian Prime Minister early on Sunday, demanding that he take tougher austerity measures than he so far has implemented.

In return for Italy receiving assistance from the European Central Bank late in the summer via vast purchases of government debt in order to temper the country’s borrowing costs, Rome committed to a series of stringent austerity measures. But divisions in his government have slowed down the pace of their implementation. Last week, Berlusconi was forced to hold a vote of confidence to prove that he still commanded sufficient support in parliament to push through cuts and structural adjustment.

Euobserver

Slovak parties reach deal on EU bail-out fund

The Slovak parliament is set to approve legislation backing a strengthening of the eurozone’s €440 billion rescue fund after the centre-left opposition said it would back a fresh version of the bill in return for early elections. (...)
“The agreement makes it possible that either tomorrow night or at the latest Friday morning the fund and the laws tied to it will be approved,” he (Robert Fico) said. “Slovakia will ratify the bail-out mechanism without any problems.”
In return for Smer’s support, the three centre-right coaliion parties that backed the EFSF changes - the Slovak Democratic and Christian Union (SDKÚ), the Christian Democratic Movement (KDH) and Most-Híd - had to agree to elections that will take place on 10 March.
The cabinet is set to propose a constitutional law to bring forward the election schedule, a bill that is to be passed via a fast-track procedure, according to local reports. Once the election bill has been approved, Smer, which had abstained in the first vote on the EFSF changes on Tuesday evening, will now give its blessing to the alteration of the bail-out fund.

(...)

Euobserver

Megbukott a szlovák kormány

Nem kapott elég szavazatot az eurós mentőcsomaggal egybekötött bizalmi szavazás a szlovák parlamentben, ezért Iveta Radičová miniszterelnöknek be kell adnia lemondását az államfőnek. A következő lépés innen Ivan Gašparovič kezében van, kisebbségi kormány, nagykoalíció is jöhet, de a helyzet mindenképpen az ellenzéki, Robert Fico vezette Smernek kedvez.
Be kell adnia lemondását Iveta Radičová szlovák miniszterelnöknek, miután a parlament nem szavazta meg az eurós mentőcsomagot, amelyet kedden délelőtt a kormányról szóló bizalmi szavazással kötött össze a kormányfő. Ezzel ő a második szlovák miniszterelnök Vladimir Meciar 1994-es bukása óta, aki lemondásra kényszerült.
Az éjszakába nyúló vita után megtartott kedd esti szavazáson a 150-ből 124 képviselő igazolta jelenlétét, de csak ötvenöten szavaztak a kezdeményezés mellett, az elfogadáshoz 76 szavazatra lett volna szükség, írja a Bumm.sk. A miniszterelnököt delegáló Szlovák Kereszténydemokrata Unió (SDKÚ), a Kereszténydemokrata Mozgalom (KDH) és a Híd összes képviselője igennel szavazott, ez azonban nem volt elegendő.

A négypárti kormánykoalícióból a Szabadság és Szolidaritás (SaS) már előre jelezte, hogy nem hajlandó megszavazni a mentőcsomagot, mert az szerintük ellentétes lenne a kormányprogram több elemével. Richard Sulík házelnök, a párt elnöke hangsúlyozta, hogy kiálltak Radičová mögött, és a reformok folytatását szeretnék, de úgy vélte, hogy reáljövedelmeikhez képest nekik kellene a legtöbbet fizetniük az egész eurózónában. Úgyszintén nem adta le szavazatát a Hídon belüli minifrakció, a Polgári Demokrata Párt (OKS) négy képviselője közül három, valamint ugyanilyen arányban az SaS listáján parlamentbe kerülő Egyszerű Emberek minifrakció zöme sem. Ján Slota pártjának képviselői nemmel szavaztak. Az ellenzéki Smer, élén Robert Ficóval a Bumm.sk szerint azzal indokolta tartózkodását, hogy noha az eurósáncot támogatják, a kormányt azonban nem, így az eredeti voksolás összevonása a bizalmi szavazással nem hagyott nekik választást.
index.hu

Eurozone ministers delay Greek bailout

Eurozone finance ministers postponed until November a decision on releasing the next tranche of last year's €110 billion EU and IMF Greek bailout. Despite assertions by Greece that it will run out of funds by mid-October if it does not receive the €8 billion installment, the finance ministers said they would first push for more austerity measures from the indebted state.

The ministers also said they would wait for a verdict from representatives of the European Commission, the European Central Bank, and the IMF–the so-called troika–to determine Greece's eligibility for more funding. The chair of the eurozone finance ministers, Luxembourg Prime Minister Jean-Claude Juncker, insisted Greece had the financial means (DeutscheWelle) to get through to November.

Juncker added that the ministers were reassessing the terms (Reuters) of a € 109 billion second Greek bailout, tentatively agreed upon in July. Ministers are considering more private-sector involvement, which could amount to an orderly restructuring of Greek debt.

European bank stocks, heavily exposed to eurozone sovereign debt, continued to fall. Shares in French-Belgian bank Dexia (WSJ) dropped 17 percent, as the French and Belgian governments said they would take all necessary measures to shore up the bank.

A drought in wholesale financing is merely the symptom of a much deeper problem–the crisis of confidence over sovereign debt. The markets simply do not have faith that a divided and hesitant Europe will be able to meet the challenge of contagion should Greece default, argues this Financial Times editorial. In addition to Greece missing its deficit targets, the country's continued economic contraction has multiplied doubts as to the wisdom of saving Greece at all, says Der Spiegel.

CNN

Greece will not meet deficit targets

The Greek finance ministry on Sunday (2 October) conceded that the government will not be able to meet the deficit reduction targets imposed by the European Union and the International Monetary Fund for this year or next.

The shortfall between spending and revenues will amount to 8.5 percent of GDP in 2011, considerably wider than the 7.6 target set by international lenders. In 2012, the government will be able to reduce the deficit to 6.8 percent of GDP, but this figure still comes short of the 6.5 percent demanded by Brussels and Washington.

The news comes as Athens unveiled further details on its plan to trim the public-sector wage bill by placing 30,000 workers into a so-called labour reserve pool. These workers will see their salaries slashed by 40 percent ahead of a presumed dismissal within a year. (...)

Euobserver

Parliament gives green light to future economic governance plans

Eurozone members will no longer be able simply to ignore Commission warnings to correct their budgetary policies. The economic governance legislation voted in plenary on Wednesday should also help ensure that countries tackle unsound economic policies more promptly, considerably increases transparency and accountability and will improve the compilation of statistics to make them more reliable and accurate.

The vote came two weeks after certain Member States, led by France, climbed down from their insistence that a warning to a country would require approval by the Council. MEPs feared that this would lead to back-room deals in which countries needing to reform their budgetary policies would be let off the hook. Instead, the agreement will force Eurozone governments to muster a majority to block a warning being issued. Neither can the governments opt to do nothing, since such a warning will in any event be issued if the vote is not taken within 10 days of it being proposed by the Commission. And if governments do vote to reject a warning, they will need to explain themselves to the European Parliament in public.

Parliament also won the right to invite finance ministers from countries that have received a warning to hearings. Member States long insisted that this should not be the case.

MEPs also negotiated that the Commission would look not only at countries with a trade deficit, but also at those running current account surpluses, when investigating the sources of macroeconomic instability. Member States had initially insisted that only current account deficit countries would be investigated. The agreed rules will therefore require the Commission to consider the possibility that countries like Germany or the Netherlands are a cause of instability and reforms could be asked of them too.

Apart from the issues settled, many other improvements were brought about by pressure from MEPs:

• putting into law the European semester (annual assessment of national budgets for economic policy coordination), through its inclusion in the legal texts. This will give the procedure much more weight and bite,
• establishing a legal framework for the surveillance of the national reform programmes
• increased powers for the Commission, which can ask for more information to be supplied to it than envisaged in the original proposals and through on the spot checks to Member States,
• A new fine (0.2% GDP) for Eurozone members which supply fraudulent statistics with regard to data on deficits and debt,
• an interest-bearing deposit sanction (0.1% GDP) for Eurozone members in cases where a Member State fails to act on recommendations to rectify a macroeconomic imbalance.
• greater independence of statistical bodies and standards for the compilation of statistics, and
• safeguarding social bargaining processes and wage setting agreements when delivering recommendations.

Link

Barroso: Eddigi legnagyobb válságát éli az EU

Történetének legnagyobb kihívásával néz szembe jelenleg az Európai Unió, José Manuel Barroso, az Európai Bizottság elnöke szerint. Az Európai Parlament strasbourgi plenáris ülésén az EU általános "állapotáról" szerdán elmondott beszédében Barroso azt mondta, nemcsak gazdasági és szociális krízis sújtja az EU-t, hanem bizalmi válság is. ...
Javasolják a Tobin-adó bevezetését
Barroso bejelentette, hogy az Európai Bizottság szerdán elfogadta a pénzügyi tranzakciókra kivetendő illetékekre vonatkozó javaslatot. "Itt az ideje, hogy a pénzügyi szektor hozzájáruljon az Unió fejlesztéséhez, miután az elmúlt években ez az ágazat több ezer milliárd eurónyi támogatást és garanciát kapott a tagországoktól" - mondta a politikus. Az új adótól évi 55 milliárd euró pluszbevételt vár az EU. A bizottsági javaslatot a tagállamoknak is jóvá kell hagyniuk ahhoz, hogy a tranzakciós adó bevezethető legyen. Több tagállam azonban egyelőre nem ért egyet ezzel a lépéssel - elsősorban Nagy-Britannia, amely a londoni pénzügyi központ érdekeit félti. Az Independent internetes oldalán megjelent cikk szerint biztosra vehető a konfliktus a brit kormány és az EU vezetői között ebben a kérdésben.
Origo

Megbukott a szlovén kormány

A szociáldemokrata Borut Pahor vezette testület távozására 51, maradására 36 képviselő szavazott. A döntés miatt lehetséges, hogy előre hozott választásokat kell tartani, az elsőt Szlovéniában azóta, hogy az ország 1991-ben függetlenné vált, kiválva Jugoszláviából.
A kormány iránti bizalmatlanság kinyilvánítása nem vonja automatikusan maga után rendkívüli választások kiírását. A kormány bukását követően hét nap áll rendelkezésre ahhoz, hogy vagy Danilo Türk államfő, vagy a parlamenti képviselők új miniszterelnök-jelöltet állítsanak. Ha azonban a törvényhozás 30 napon belül nem választja meg az új kormányfőt, előre hozott választást kell tartani. Normális körülmények között jövő év szeptemberében lenne esedékes a következő választás Szlovéniában.
A ljubljanai fordulat hátterében gazdasági okok állnak. A Pahor vezette koalíció azután került kisebbségbe a parlamentben, hogy pártjai között nézeteltérés támadt a reformpolitikát illetően, amelyet a választópolgárok idén tavasszal több népszavazáson nagy többséggel elutasítottak. A koalíciós viszály nyomán előbb a DeSUS (nyugdíjasok pártja), majd a Zaresz nevű liberális párt fordított hátat Pahor kormányának, amely így már csak két párt 33 képviselőjére számíthatott a 90 tagú törvényhozásban.
Pahor öt új miniszter tervezett kinevezését összekapcsolta a kormánya iránti bizalom kérdésével, így akarván támogatást szerezni vitatott reformjaihoz. A DeSUS és a Zaresz képviselői azonban az ellenzékkel együtt szavazva megbuktatták a kisebbségi kormányt.A szavazás után adott nyilatkozataiban minden parlamenti párt illetékese mielőbbi választások mellett kardoskodott. A gazdasági válság következtében megroggyant Szlovénia lehet az euróövezet válságának újabb dominókockája – vélekedett az osztrák hírügynökség.
www.index.hu

Former centre-left MEP wins Danish elections

Denmark on Thursday (15 September) elected former Social-Democrat MEP Helle Thorning-Schmidt to become its first female premier. The new government is likely to row back on controversial border checks and have a more generous approach to EU spending.

The leftist bloc behind Helle Thorning-Schmidt won 89 out of the 179 seats in the Danish Parliament, while the incumbent centre-right coalition only managed to secure 86 seats.

Through her marriage to Stephen Kinnock, the 44-year old Thorning-Schmidt is the daughter-in-law of Neil Kinnock, former leader of the British Labour Party and EU commissioner, and Glenys Kinnock, former UK minister for Europe. Trained at the "College of Europe" and a former MEP between 1999-2004, Thorning-Schmidt is set to "devote more attention to EU politics, which she knows from inside," Denmark's ambassador to Belgium Poul Skytte Christoffersen told this website.

In terms of policy, the Social Democrats have announced they are to roll back the enhanced border checks policy - a concession made by the centre-right to the anti-immigrant People's Party - which has put Denmark on collision course with the European Commission and Germany.

In terms of negotiations on the next EU budget, which will have to be carried out next year under the Danish and Cypriot EU presidencies, Christoffersen predicts that the leftist government may turn out to be less "restrictive" than the current one when it comes to EU spending. "Climate change may climb higher on the agenda, given that now it's almost a forgotten topic," he added.

Link

Euro leaders agree second Greece bailout

Following weeks of political and market turbulence, eurozone leaders on Thursday undertook radical steps to safeguard the single currency agreeing the beginnings of a European Monetary Fund and a fresh bailout for Greece. With the one-day emergency summit representing something of a make-or-brake gathering for the 17-nation eurozone, leaders were quick to underline the far-reaching and "credible" nature of the agreement.
"For the first time, the politics and the markets are coming together," said European Commission president Jose Manuel Barroso, with markets having to date doubted the fundamental commitment of leaders to saving the eurozone. EU council president Herman Van Rompuy said the deal proved "we will not waver in defence of our common currency".
Under the agreement, Greece is to get a fresh bailout, but with a lower interest rate (around 3.5%) and with a minimum of 15 years to pay back the loans. "The total official financing will amount to an estimated 109 billion euro," says the final agreement.
Pushed by Germany, the private sector will also be involved but eurozone leaders stressed several times that private sector contribution will be "voluntary" and will not be part of any potential future bailouts for other countries. There remains a question mark over whether rating agencies will view the deal as a default, having previously said they take a dim view of involving the private sector. German chancellor Angela Merkel indicated it was a risk she is willing to take. "We all know rating agencies are going to take a close look at this. I can't prejudge their rating. But I think that for markets it's important to achieve sustainability and for that it's very important to have private sector involved."
'European monetary fund'
Eurozone leaders also attempted to put out potential future fires by agreeing an overhaul of the eurozone's €440bn bailout fund so that it can act pre-emptively. Under the deal, which will have to be ratified by national parliaments, the fund will be entitled to help out countries with credit line before they get to the stage of needing long-term aid and recapitalise banks through loans to governments. This aid could also be supplied to countries not in a bailout programme, something that is not the case currently.
"We have agreed to create the beginnings of a European Monetary Fund," said French president Nicolas Sarkozy. Merkel, who forced Paris to back down on a proposed bank levy in return for giving new powers to the rescue fund, said the move was "historic". "What we are doing now is an example for deeper integration - handing over and transferring more competences to EU institutions. This is a historic day."
Barroso, who on the eve of the summit said the history would harshly judge the leaders if they failed to reach a deal, urged them to "defend and implement" it with "determination".
Greek prime minister George Papandreou said the deal will "mean (a) lightening of the burden on the Greek people" whom he referred to as "proud and industrious".
While European stocks rallied when draft conclusions were leaked earlier in the day, some commentators were already highly critical of the deal. Sony Kapoor, managing director of policy group Re-Define Europe, said: "EU leaders have missed the boat, yet again." "The leaders pay lip service to the need for growth and investment in Greece but this is no Marshall Plan. The debt overhang will hurt growth and investment even as EIB and other EU funds seek to stimulate it."
He also said the changes to the rescue fund were based on "excessive conditionality" with Merkel stressing several times that the enhanced fund will need unanimity from member states in order to act.
Euobserver

Az egész társadalom felrobbant Cipruson

A múlt héten felrobbant fegyverraktár mindent felkavart. Kedd este a nicosiai elnöki palota kerítésének két oldalán több ezer kormánypárti és több ezer ellentüntető gyűlt össze. A kormányellenesek hosszú távra rendezkedtek be: terveik szerint az államelnök lemondásáig folytatják. A robbanás után a szigeten akadozik az áramellátás. A bajban eddig egyedül az örök ellenségnek számító ciprusi törökök segítettek.

Link

Farewell, European Union

Economic default. Street riots. Political disunity: the EuroGeo-Political world as we know it is ending. We’re in the process of watching Greece default. Portugal’s Next. Ireland’s after that. In fewer than 16 months, the European Union will be no more.
As we predicted on June 29, and the Moody’s ratings service essentially confirmed by dropping the country’s rating to junk-status, Greece is set to default (even the current “best case” French scenario means is predicted to end in a “selective default” situation). And soon. Given that the “not-possible-to-think-about is suddenly exactly what we’re-thinking-about-and-planning-for", we have to wonder who’s next – now that default is suddenly an option?
In July 5 Portugal joined Greece at the “bottom of the economic barrel” (per Moody’s), disqualifying the country from an index of sovereign debt and generating a mass selloff in the markets. Portugal need not feel financially lonely, however; it seems that economic misery apparently loves company. Ireland, of course, is next.

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Whatever it was – why the world ignored the obvious economic writing on the wall in the case of Ireland, and, until only a few weeks ago, that of Greece and Portugal - cannot change what will be. These peaceful economic times are over. Last week’s riots in the streets of Greece are just the beginning of the end for the European Union. Get ready.

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The European Union’s “core” members – Germany and France – would do well to stop financially finagling bail-out-package-after-bail-out-package for first Greece, then Portugal, then…and should instead start focusing on what’s next post-European-Union as we know it. Delaying the inevitable economic and financial pain will be a financially expensive, politically explosive, and potentially globally dangerous and destabilizing exercise. The world has to start planning for a defaulted currency, and stop hoping it simply won’t happen.

Read more: http://www.businessinsider.com/farewell-european-union-its-been-nice-knowing-you-2011-7#ixzz1RUdcbbsq

Eredményekkel teli uniós csúcs

Az Európai Tanács kétnapos ülésén számos területen történt előrelépés:
Horvátországgal kapcsolatban az elért eredmények és a kedvező bizottsági értékelés fényében az Európai Tanács felkérte a Tanácsot, hogy hozzon meg minden ahhoz szükséges döntést, hogy a közelmúltban a Bizottság által benyújtott közősálláspont-tervezetek alapján 2011. június végéig le lehessen zárni a Horvátországgal folytatott csatlakozási tárgyalásokat, és a csatlakozási szerződést az év végéig alá lehessen írni.

Az első tapasztalatok fényében az Európai Tanács úgy véli, hogy az európai szemeszter az uniós és a nemzeti szakpolitikai döntéshozatal számára hatékony kormányzási módszerré válhat. A stabilitási és konvergenciaprogramok és a nemzeti reformprogramok egyidejű benyújtása révén az EU egyszerre tudja értékelni a nemzeti növekedési és költségvetési stratégiákat és tudja kezelni az esetleges kockázatokat, egyensúlyhiányt, illetve a szükséges kompromisszumokat.

Az ülésen jóváhagyták a Duna régióra vonatkozó uniós stratégiát, egyúttal felkérték az állam- és kormányfőket, hogy azt a 2011. április 13-i tanácsi következtetésekben foglaltakkal összhangban haladéktalanul hajtsák végre; valamint felkérték a tagállamokat, hogy a Bizottsággal együttműködésben folytassák a lehetséges jövőbeli makroregionális stratégiákkal kapcsolatos munkát, különösen az adriai- és jón-tengeri régió tekinteteben.

Hivatalosan elfogadták a romák befogadásáról szóló stratégiát is, a tagországoknak a stratégia értelmében 2011 végéig elő kell készíteniük a nemzeti roma befogadási stratégiájukat, valamint a romák helyzetének javítását célzó, az átfogó társadalmi befogadási szakpolitikákba ágyazott integrált szakpolitikai intézkedéscsomagokat kell kidolgozniuk.

A migrációval kapcsolatban az Európai Tanács ismételten hangsúlyozta: a személyek szabad mozgása, amelyet a Szerződés rögzít, az európai integráció egyik legkézzelfoghatóbb és legsikeresebb vívmánya, és egyben a polgárok egyik alapjoga. Az állam- és kormányfők szerint a schengeni együttműködés egészét veszélyeztető kivételes körülmények kezelésére olyan mechanizmust kell bevezetni, amely nem veszélyeztetheti a személyek szabad mozgásának alapelvet. A mechanizmusnak egy sor fokozatosan, differenciáltan és összehangoltan alkalmazandó intézkedésből kell állnia, hogy segítse a külső határokon komoly nyomásnak kitett tagállamokat. Ezen intézkedések magukban foglalhatnak helyszíni vizsgalatokat, technikai és pénzügyi támogatást, segítségnyújtást, koordinációt, valamint a Frontex közreműködését.

E mechanizmus kereteben legvégső esetben egy védzáradék is bevezetésre kerülhetne, amely lehetővé tenne a belső határellenőrzések kivételes újbóli bevezetését olyan valóban kritikus helyzetekben, amikor egy tagállam mar nem tudja teljesíteni a schengeni szabályok értelmében ráháruló kötelezettségeket. Erre az intézkedésre ugyanakkor pontosan meghatározott objektív kritériumok és egységes értékelés alapján kerülhetne sor, szigorúan korlatozott alkalmazási körre és időszakra vonatkozóan, figyelembe véve annak szükségességet, hogy a sürgős esetekre reagálni tudjunk. Mindez nem érinti majd a személyeknek a szabad mozgáshoz fűződő, a Szerződések által biztosított jogait. Az Európai Tanács egyúttal felkérte a Bizottságot, hogy szeptemberben nyújtson be javaslatot egy ilyen mechanizmusra.

Az európai menekültügyi politikát jelentős kihívások érték a közelmúltban, ezért az Európai Tanács emlékeztetett rá: a védelemre szorulók számára biztonságos és hatékony menekültügyi eljárásokat kell biztosítani, amihez viszont az e területen elért uniós vívmányok teljes körű alkalmazására van szükség. Az unió vezetői döntő fontosságúnak tartják, hogy 2012-re befejeződjön a közös európai menekültügyi rendszer kialakítása, amely magas szintű védelmi előírásokon alapszik, amely egyúttal lehetővé teszi a menedékjog iránti kérelmek gyors vizsgálatát.

Euvonal

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Italy’s Mario Draghi dodged last- minute French objections to win the European Central Bank presidency in a dispute that threatened to overshadow efforts to prevent a Greek default. Draghi’s appointment today at the end of a two-day European Union summit followed a pledge by euro leaders yesterday to do whatever it takes to support Greece as long as Prime Minister George Papandreou pushes through a package of deficit cuts. Bloomberg

EU to Discuss Greek Plan

European finance ministers meet tomorrow to hammer out a new Greek bailout package watertight enough to avoid triggering a default that German Chancellor Angela Merkel said would be uncontrollable. Officials must figure out how to design a plan that will encourage investors to roll over expiring Greek debt after Merkel yesterday ended a standoff with the European Central Bank over restructuring the country’s debt load.
Merkel said today in Berlin that policy makers must make sure the Greek crisis doesn’t infect the rest of the euro region and spark a new global financial crisis.
“We all lived through Lehman Brothers,” she told a meeting of activists from her ruling Christian Democrat party. “I don’t want another such threat to emanate from Europe. We wouldn’t be able to control an insolvency.”
Bloomberg

Erdoğan’s victory and EU talks

"Being elected for a third term, with almost 50 percent of the vote, is something that EU leaders can only dream of. After eight-and-a-half years in power, the Justice and Development Party (AKP) remains the most popular political party Turkey has had in decades.
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Erdoğan’s popularity is due in part to the strength of Turkey’s economy, which is now the 16th largest in the world, growing at a rate of around 6 percent annually since the AKP came to power. However, Turkey must start to tackle some financial weaknesses which are not much talked about but are on the increase, including a massive current account deficit (CAD), expected to exceed 9 percent of gross domestic product (GDP) this year -- close to the levels that contributed to economic crises in Greece and Portugal -- and rising inflation.
While Erdoğan will return to office with an over-flowing in-tray both on the domestic and foreign policy fronts, replacing the 1982 Constitution is a top priority. Because the electorate denied Erdoğan a supermajority in Parliament, which would have given him the freedom to do whatever he pleased, the AKP fell short of the 330 seats required to rewrite the Constitution unilaterally. Therefore -- and probably for the better -- Erdoğan must seek consensus, formulating a new constitution that is inclusive and reflects the opinions of the entire country, as opposed to a “made-by-the-AKP”-style document which could have been disastrous. In particular, the Peace and Democracy Party (BDP) -- which also came out of these elections victorious -- will be a key party in the constitutional debate. This also means Erdoğan may not be able to proceed with his grand plan to transform Turkey’s political system from a parliamentary to a presidential one. It is no secret that Erdoğan aspires to be president...
As for relations with the EU, senior bureaucrats quickly congratulated Erdoğan. In a joint statement, President of the European Commission Jose Manuel Barroso and European Council President Herman Van Rompuy said: “We are convinced the coming period offers new opportunities for further reforms, including work on a new constitution in the broadest possible consultation and a spirit of dialogue and compromise, and for strengthening confidence between Turkey and all EU member states. Progress in these fields should also give new impetus to the accession negotiations with the European Union.” "
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Link

Croatia Given Conditional Approval to Join E.U. in 2013

After six arduous years of talks on its bid for European Union membership, Croatia was told Friday that it should be able to join in 2013, but that its efforts to combat corruption and reform its judiciary will be monitored in the meantime in case they slip.

Held back for years by its failure to cooperate fully in the prosecution of war crimes suspects, Croatia was then pressed by the E.U. to make a host of changes, including reforms to its judicial system.

On Friday it was judged to have finally met entry requirements, furthering the quest for it to become the 28th E.U. state — providing the bloc’s 27 nations agree to that timetable.

More...

Finland delays vote on EU bailout for Portugal

Finland's prime minister-elect suffered a setback in trying to win parliament's support for the EU's Portugal bailout plan, as a vote on the package was delayed because the second-largest SDP party remained undecided. Jyrki Katainen, leader of the National Coalition which won the most votes in April's election, had been hoping to gain approval on Wednesday to back the EU's plans at a eurozone meeting on May 16-17.
A parliamentary committee has moved the vote to Friday, a senior Social Democratic Party (SDP) member told reporters. The Finnish parliament's approval is important because it, unlike others in the euro zone, has the right to vote on EU requests for bailout funds. Support from the SDP is crucial to securing majority approval in parliament, with the eurosceptic True Finns party strongly opposed to the plan. The True Finns finished a close third in elections after a campaign which attacked bailouts for debt-hobbled members of the European Union.
Link

Szabad a munkavállalás Németországban és Ausztriában

Éppen hét év telt ez azóta, hogy Magyarország kilenc másik tagállammal együtt belépett az EU-ba. Ez az évforduló azt is jelenti, hogy ettől az időponttól kezdve valamennyi tagállamban – így a munkaerő-piacát utolsóként megnyitó Ausztriában és Németországban is – szabadon, azaz munkavállalási engedély nélkül és előzetes munkaerő-piaci vizsgálat nélkül vállalhat munkát valamennyi magyar állampolgár.

Link

Párizs és Róma az uniós határellenőrzés szigorítását fontolgatja

Az „arab tavasz” hatására több tízezer menekült érkezik folyamatosan az Unió déli országaiba, jelentős kihívás elé állítva ezzel az olasz vagy épp a francia rendvédelmi szerveket - egyes vélemények szerint ez a schengeni rendszer alapjait is kikezdheti. Silvio Berlusconi és Nicolas Sarkozy ma Rómában egyeztetnek a schengeni határok esetleges megerősítéséről.
A két vezető politikus várhatóan kezdeményezi az ellenőrzés szigorítását az uniós határokon – ez a gyakorlatban akár a belső határaikon történő ellenőrzés ismételt bevezetését is jelentheti, amely az Unió egyik legkézzelfoghatóbb előnyének (ideiglenes) felfüggesztésével járna együtt.
A francia Európa-ügyi miniszter, Laurent Wauquiez szerint „Európa nem jelenthet egyet az illegális bevándorlók szabad mozgásával”, Franciaország jelenleg a határőrizet visszaállításának lehetőségét tanulmányozza.
A két déli ország között jelenleg meglehetősen feszült a viszony: Franciaország múlt vasárnap magára vonta az olaszok haragját azzal, hogy aznap Olaszországból érkező vonatjáratokat törölt, megakadályozandó annak a vonatnak a belépését Franciaországba, amelyen tunéziai migránsok és politikai aktivisták tiltakoztak Párizs bevándorlási politikája ellen. Párizst viszont az bosszantja, hogy Olaszország úgy döntött, fél évig érvényes tartózkodási engedélyt ad az olasz partokra január eleje és április 5. között érkezett, több mint 20 ezer tunéziainak, hogy csatlakozhassanak Franciaországban és más európai uniós országokban élő „barátaikhoz és rokonaikhoz”.
Claude Guéant francia belügyminiszter hétfőn emlékeztetett: a schengeni szerződés értelmében az az ország kezeli a bevándorlók helyzetét, amelybe először beutaztak. Hangsúlyozta, hogy azoknak a külföldi állampolgároknak, akiknek Olaszország ideiglenes tartózkodási engedélyt ad, meg kell mutatniuk, hogy rendelkeznek a második országban való tartózkodáshoz és a hazautazáshoz szükséges pénzzel. Ezen összeg hiányában a francia hatóságok visszafordítják őket Olaszországba, ahova először utaztak be - tette hozzá.
A schengeni előírások értelmében a migránsoknak tervezett tartózkodásuk idejére napi 62 euróval kell rendelkezniük. Ha elhelyezésükről gondoskodik valaki, akkor elegendő 31 euró is. Ellenkező esetben a schengeni rendszernek abba az országába kell visszaküldeni őket, ahol először beléptek a schengeni övezetbe.

Euvonal

Success of the nationalist right in Finnish Elections

The True Finns, a staunchly anti-EU and anti-immigration party saw their support skyrocket, from five seats in the last election to 39 on the back of almost a fifth of the country's voters.
On a 70 percent turnout, up from 68 percent in the 2007 vote, the conservative National Coalition Party drew the largest number of votes, with 20.4 percent. This endorsement gives them the most seats in the chamber, on 44, although the party is down six seats on the last election.
The conservatives, whose chief, the current finance minister Jyrki Katainen, will lead the next government, will have to choose between the True Finns and the second-place Social Democrats. The centre-left Social Democrats also lost three seats, taking them down to 42 mandates, although analysts describe the vote as a defensive success for the party, with the vote up on recent surveys. The Social Democrats had warmed to the growing anti-EU mood and criticised the recently announced EU-IMF bail-out of Portugal from the right.
The biggest party in the last election, the liberal Centre Party of Prime Minister Mari Kiviniemi was the biggest loser of the night, shedding 16 seats, a result that has pushed them into fourth place.
With the second and third biggest parties sharply critical of EU bail-outs of countries viewed by voters as feckless and indigent, the election puts the recent rescue of Portugal in the balance.
Euobserver

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."

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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

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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

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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.
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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."

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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."

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