EU official says Greece must improve competitiveness
Greece must improve the competitiveness of its damaged economy if it is to remain in the euro zone, a top European official said on Wednesday.
French Budget Min: EU Has Role To Play In Budget Discipline
French Budget Minister Valerie Pecresse Monday said European Union institutions have a role to play to establish budget discipline across euro-zone governments.
Germany’s CSU: Merkel must push EU budget discipline
The leader of one of Angela Merkel’s coalition partners urged the German chancellor to push for budget discipline within the euro zone at an EU summit next week and not to give in to pressure from France and other states to soften her stance.
Oil Volatility Little Changed as Futures Rise on EU Optimism
Oil options volatility was little- changed as the underlying futures rose amid speculation that euro-area leaders will do more to fight the debt crisis.
EU Tax May Kill 70% of Bloc’s Derivatives Trade, Commission Says
EUA proposed European Union tax on stock trades may quash about 70 percent of the bloc’s derivatives trade by volume, according to European Commission projections.
EU to Transfer $4,5 Billion of CO2 Permits to EIB This Month
The European Union aims to transfer carbon permits from a 3,3 billion-euro ($4,5 billion) reserve to the European Investment Bank this month, enabling the lender to start selling them to help finance innovative energy projects.
11/11/2011
— Filed under: Finance
Tags: EU, European Investment Bank
France EU Min: Growth Could Be Higher Than 1% Next Year
The French economy likely will grow more next year than the government has forecast, European Affairs Minister Jean Leonetti Minister said Tuesday.
Deal on EU rescue fund nears completion
EFFORTS to put together the so-called bazooka to ringfence the euro and its vulnerable member states from the markets were inching their way towards a conclusion last night, but the final deal will have to wait until the EU leaders return to Brussels on Wednesday.
09/25/2011
— Filed under: Finance
Tags: France, market, speculations
EU leaders try to prevent economic meltdown
AN EMERGENCY meeting of the leaders of all 27 European Union states will be held on Wednesday as the Eurozone battles to find a solution to the continent’s debt crisis, it was revealed last night.
The decision to include representatives of states which do not use the euro at the meeting underscored the gravity of the challenge facing European leaders as they work to prevent Greece’s financial turmoil spilling into other states.
Speaking after yesterday’s meeting of EU leaders in Brussels, Prime Minister David Cameron acknowledged greater fiscal and economic integration in the Eurozone was now inevitable, but claimed to have secured a commitment that would protect UK interests.
He said: «The Eurozone countries must come together and take responsibility and produce a comprehensive and credible package which puts the success of the Eurozone beyond doubt.»
The crisis has been linked to low business confidence and the Federation of Small Businesses in Wales yesterday called for a VAT cut to help enterprises and incentives to encourage employment.
Figures from both the left and the right of the political spectrum yesterday demanded that politicians work to reform the EU and face up to the threats confronting the UK economy so that real growth can return.
Caerphilly Labour MP Wayne David, a former leader of his party’s group in the European Parliament, said it was essential that Britain was not left out of the decisions which are being taken to secure the Eurozone’s future.
He said: «Our view is we should not just be knocking at the door but sitting at the table, making sure British interests are taken into account.
«We’ve got to be there arguing the British case on the development of the single market because our economy depends on that.
«This is not something ‘over there’. This is something that could affect everybody in this country.»
But Mr David also stressed that a change of direction was needed to steer the EU back towards prosperity.
He said: «It’s one of the ironies that David Cameron is supposed to be a eurosceptic but his closest ideological soulmate is (German chancellor) Angela Merkel, because they are both pursuing excessive austerity measures that are preventing growth.»
Cardiff University’s Professor Patrick Minford, long seen as a leading champion of Thatcherite economics, doubted that a solution would be found this week.
He said: «I don’t think anything is going to happen, to be honest. There’s an impossibility thing going on here.
«The Germans don’t want to put up any more money and Greece is clearly going to need an awful lot.»
Laying out the alternatives as he sees the situation, he said: «Somebody has got to agree to let these countries go and default or somebody has to rescue them.»
Prof Minford expects the IMF to deliver a special fund to cope with the consequences of defaults, but cannot see an early end to the instability.
He said: «There are a lot of vested interests in the game. This is the problem.»
However, he cautioned against despair at the challenges facing the EU and urged British companies to focus on global opportunities.
Claiming that people had panicked «at the first sound of gunfire», he said: «The world economy is not in as bad shape as people talk about. It’s growing this year by 4%…
«Look where there is growth and get stuck in there and sell there.»
Carmarthen East & Dinefwr Plaid Cymru MP Jonathan Edwards argued that searching questions had to be asked about the nature of the European economies.
He said: «The problems faced by the Eurozone are of great importance because of the trade that we do with euro-areas on the continent and in Ireland and our ability to export goods and services.
«The question is whether Europe can either politically or economically continue to write ever-larger cheques for bailouts or face the problem head-on and accept that European banks and countries will have to take a haircut so that we can get back to the previous economic situation — something which, to some extent, the markets have already priced in.
«In the longer term, we need to be examining the economic choices of the developed world and, in the light of these recurring financial crises, examine other solutions which put people before markets — which means keeping people in their homes, full employment, restructuring the economy away from the finance sector and, of course, the environment.
«It wasn’t ordinary people that caused this crisis, but too often they are the victims of poor economic decisions by those who thought they knew better.»
Prof Minford argues that Britain’s relationship with the EU must change and that present policies threaten the UK’s long-term prosperity.
He said: «The problem is this club is not suiting us at all. We’ve just had the proposal for the financial transaction tax, which is the most incredible slap in the face for us. This is a disaster for us, really.
He also warned that «regulation mania» must not be allowed to result in a «hobbled» financial services sector.
Arguing that EU policies threatened Britain’s recovery, he said: «We have an interest in free markets and flexible labour markets to get our unemployment down and improve our growth situation… They must not have the power to regulate us so much — that’s the fundamental problem.»
Iestyn Davies, of the Federation of Small Businesses, acknowledged the anxiety among Welsh entrepreneurs.
He said: «There is this feeling there is no light at the end of the tunnel except prolonged cuts and prolonged austerity.»
Mr Davies said measures such as a VAT cut, a National Insurance Contribution holiday and support for recruitment would help businesses respond to the wider economic challenges.
This is not something ‘over there’ — this could affect everybody in this country
09/24/2011
— Filed under: Finance
Tags: economy, EU, leaders
