Daily Press Summary
Die Welt: Germany wants separate body within the ECB to have final word on banking supervision
FT Deutschland reports that Germany wants the ECB to only supervise systemically important ‘healthy’ banks in the Eurozone. Die Welt reports that it also wants to see final decision-making powers rest with a new, yet to be established supervisory committee within the ECB. Non-euro members would get voting rights on the committee if they agree to have their banks supervised by Frankfurt.
Welt Handelsblatt FTD Handelsblatt
MPs debate the UK’s membership of the EU
In a House of Commons Westminster Hall debate on the UK’s membership of the EU organised by Andrea Leadsom MP this morning, she set out the need for new UK membership terms. Responding for the Government, FCO Minister Mark Simmonds MP praised the work of the Fresh Start Group of MPs and agreed the EU needed reform. Shadow Europe Minister Emma Reynolds was pressed as to whether the Labour party would rule out an in/out referendum.
Parliament TV EU Fresh Start
Uncertainty over EFSF/ECB bond-buying request drives Spain’s borrowing costs up
Spain this morning sold over €4.5bn of twelve and 18-month Treasury bills, with solid demand and lower interest rates than in the previous auction. However, the interest rate on Spain’s ten-year bonds has reached above 6% again, due to the uncertainty over whether the Spanish government will make a request for EFSF/ECB bond-buying. Meanwhile, new figures from the Bank of Spain show that the loans in arrears of Spanish banks reached a record 9.86% of the total in July, up from 9.42% in June. Spanish government sources have indicated that the final results of the independent audit of the Spanish banking sector, due to set out the capital needs of individual banks, will be published on 28 September.
FT CityAM Telegraph Irish Times El País 2 Expansión Jornal de Negócios Bloomberg El Economista Cinco Días 2 Les Echos El País 3 Cinco Días El País RTVE
Greek government pushes to finalise austerity measures
The leaders of the Greek coalition will meet on Wednesday or Thursday to finalise the plan for the €11.5bn in cuts which need to be agreed with the EU/IMF/ECB Troika by the end of the week and ideally submitted to eurozone finance ministers at their 8 October meeting. The Greek government is planning to introduce a single tax rate of 30% for self-employed people and medium and large enterprises in an attempt to combat tax evasion. Meanwhile, data from Eurostat showed that wages on average fell by 11.5% over the past year, compared to an average rise of 1.5% in the eurozone as a whole.
A new Public Issue poll for Skai TV and Kathimerini suggests that only 20% of Greeks are satisfied with the government and 68% are against the terms of the EU-IMF bailout deal. Nevertheless, 67% of Greeks still view the euro positively.
Kathimerini IHT Kathimerini 2 Sole 24 Ore Kathimerini 3 Kathimerini 4 Kathimerini 5 Kathimerini 6 WSJ Review & Outlook FT: Magnus WSJ: Gave
In an internal review of its lending programmes, the IMF noted that it faced “serious challenges” when designing eurozone bailouts due to the significant constraints applied by the eurozone’s rules and the potential for contagion.
Merkel: Not for governments to set limits on ECB bond-buying
Bavarian Prime Minister and CSU leader Horst Seehofer has argued that the €190bn cap on German liability imposed by the German Constitutional Court in its ruling on the ESM and fiscal treaty last week should apply to the euro-rescue effort as whole, including the ECB’s new OMT bond-buying programme. However, in her annual summer press conference German Chancellor Angela Merkel reiterated her support for the ECB’s new bond buying programme, suggesting that governments do not “set limits” for what the central bank decides is appropriate.
Spiegel Reuters FT WSJ CityAM WSJ Telegraph Irish Independent Irish Independent 2 Irish Times
According to a new BVA poll, 53% of French have either a “rather bad” (32%) or a “very bad” (21%) opinion of French President François Hollande. Only 46% of French – 15% less than in June – have either a “rather good” (37%) or a “very good” (9%) opinion of the French President, notes Le Figaro.
In the IHT, Polish Foreign Minister Radek Sikorski and German Foreign Minister Guido Westerwelle outline the proposals set out in the ‘Future of Europe’ group’s final report, due to be submitted to the European Parliament and the national parliaments of EU member states. The report proposes direct elections to the top EU posts, as well as the establishment of a joint EU border force.
IHT: Sidorski & Westerwelle RTBF Reuters Welt Handelsblatt Standard Gazeta Wyborcza Polskie Radio
The Independent reports that since 2010 there has been a 29% increase in the number of doctors joining the UK General Medical Council's register from Greece. At the same time the number of doctors who registered in the UK from Spain increased by 28%.
Open Europe research Independent
An urgent hearing of the Court of Session in Edinburgh will take place on Thursday, with Scotland's information commissioner Rosemary Agnew demanding the urgent two-day meeting to confirm that the ruling nationalist administration should release any legal advice on EU membership prospects.
Euractiv reports that the European Parliament is considering an EU-wide legal approach to match-fixing and money laundering in sport.
FAZ reports that European Parliament President Martin Schulz is a possible candidate to succeed José Manuel Barroso as European Commission President in 2014.
The Express reports that Lord Stevens of Ludgate has left the Conservative Party to join UKIP and calling for an in-out referendum on EU membership. Meanwhile, writing in the Express, UKIP leader Nigel Farage argues there “there is no third way – it must be in or out”.
Express: Farage Express