Daily Press Summary
Cameron: We should use this opportunity to “reshape Britain’s membership of the EU” with “less cost, less bureaucracy and less regulation”
Speaking yesterday during his visit to Brazil, David Cameron said, “I believe that Britain should be in the EU and that being part of the world’s largest single market is vital for our national interest. But Europe is changing rapidly and fundamentally…We should use that opportunity to reshape Britain’s membership of the EU in ways that advance our national interest in free trade, open markets and co-operation. I think that means less Europe not more Europe; less cost, less bureaucracy and less regulation.”
The Mail reports that Mr Cameron will next month push for the repatriation of more than 100 powers over justice, crime and policing from the EU, as recommended in a recent Open Europe report, and is also likely to veto demands for a bigger EU budget. Mr Cameron is due to make a major European speech before December's EU leaders summit.
Meanwhile Reuters reports that French Minister for European Affairs Bernard Cazeneuve has said ; “If, for greater solidarity, for more efficiency in the mechanisms of mutualizing debt or intervening in the markets, new treaties are necessary, then yes, we'll need new treaties.
Open Europe research: Crime and policing Open Europe research: EU budget Open Europe research: UK-EU trade Mail Express Mail 2 Telegraph BBC: Robinson Spectator: Coffee House Guardian FT Reuters
Spain pledges to cut deficit by €40bn next year;
Spanish Deputy PM: Constitutional Court would invalidate unilateral Catalan referendum
The Spanish government yesterday unveiled its draft budget for 2013, which includes spending cuts and tax hikes to cut the deficit by €40bn next year. The government said it would use €3bn from the Social Security Reserve Fund, to cover “a series of liquidity needs”. A set of 43 measures aimed at improving the competitiveness of the Spanish economy was also presented. The EU Commissioner stressed that the reform plan adopted by the Spanish government goes “beyond” the recommendations made to Spain by the European Commission. El Mundo notes that the markets have reacted with “indifference” to the announcement, with Spain’s borrowing costs unchanged from yesterday.
Meanwhile, the Catalan parliament yesterday adopted a resolution urging the regional government to consult the Catalan people on independence during the next parliamentary term “as a matter of priority”. Spanish Deputy Prime Minister Soraya Sáenz de Santamaría warned yesterday that, if Catalonia were to unilaterally call a referendum on independence, the Constitutional Court would invalidate it. In City AM, Open Europe’s Vincenzo Scarpetta argues that an independent Catalonia cannot be seen as a short-term prospect, discussing some of the obstacles which still stand in its way. Separately, Spain’s Castilla-La Mancha region has announced that it will ask the Spanish government for a €848m bailout.
El País El País 2 El País 3 El País 4 El País 5 El País 6 Cinco Días El Mundo El Mundo 2 El Mundo 3 El Mundo 4 Expansión Expansión 2 Expansión 3 La Vanguardia La Vanguardia 2 Economist: Leader City AM: Scarpetta Olli Rehn’s statement FT CityAM WSJ FT FT 2 FT 3 FT: Editorial Telegraph Irish Times European Voice Euractiv Telegraph: Evans-Pritchard Telegraph: Warner Sole 24 Ore Le Monde Sole 24 Ore 2 The Irish Independent Independent IHT Guardian Le Figaro Times Open Europe: blog
New Open Europe briefing: Can struggling eurozone countries achieve the necessary 'internal devaluation'- and at what political cost?
Open Europe yesterday published a new briefing looking at the degree of ‘internal devaluation’ needed in struggling countries to keep the Eurozone intact – and whether citizens are likely to be able to stomach such adjustments. The report notes that Spain, Italy and Ireland, in particular, can still in theory achieve the internal devaluation needed to become reasonably competitive with Germany. By 2011 Spain had achieved over 50% of its scheduled internal devaluation, while Ireland has managed over 80% and Italy has to reduce its labour costs by another 10%. Portugal and Greece will both struggle to achieve the necessary devaluation. The report concludes that although large-scale internal devaluation is economically necessary, it may prove to be too politically explosive, at least under the current timeframe envisaged. The report was cited by the Telegraph and Greek business daily Capital.
Open Europe research Open Europe press release Telegraph Capital
Austrian anti-euro party "Team Stronach" yesterday launched its election campaign. 10% of Austrians would vote for the party and 50% would like to see it in Parliament, according to polls.
FAZ Reuters Standard
Monti: I may consider second mandate, if asked to stay on
Italian Prime Minister Mario Monti said yesterday, “If [Italian] political forces, under special circumstances, were to ask me to serve the country [after next year’s elections], I would consider doing it.” Meanwhile, speaking at a book launch yesterday, Italy’s former Prime Minister Silvio Berlusconi said that the exchange rate fixed when Italy joined the single currency was “suicidal”
La Stampa La Stampa 2 Repubblica Repubblica 2 Sole 24 Ore TGcom EUobserver Les Echos Les Echos 2 Le Monde FT WSJ
The French government will present its draft budget for 2013 today, which is expected to include €30bn savings to bring France’s deficit down to 3% of GDP by the end of next year, reports La Tribune
Le Figaro La Tribune
The Greek coalition government finally reached an agreement on a package of €13.5bn in savings yesterday, after more emphasis was placed on tax increases rather than spending cuts
Kathimerini FT WSJ Kathimerini 2 IHT EUobserver Le Monde Independent WSJ Review & Outlook Independent: Pryce Economist Economist: Charlemagne
Slovenian Prime Minister Janez Jansa has said that he is "determined to do everything that's possible" to avoid his country having to ask for an EU bailout.
German media reports that former German Finance Minister Peer Steinbrück has won the struggle to become the SPD's candidate for Chancellor.
Bundesbank President Jens Weidmann yesterday added his support to the view that the ESM, the eurozone’s permanent bailout mechanism, can only be responsible for bank bailouts that take place after the ECB becomes the eurozone’s single financial supervisor.
Finnish President Sauli Niinistö told weekly magazine Suomen Kuvalehti that a eurozone-wide deposit insurance would be “totally impossible and incomprehensible” for Finland.
Euractiv notes that the European Commission’s reference to “reciprocity” in a communication on industrial policy, to be unveiled on 10 October, is likely to reopen the debate between countries such as the UK and France on free trade with fast developing countries, such as the BRICs.
The Mail notes that the European Commission has challenged Scottish First Minister Alex Salmond’s law which imposes a minimum price on alcohol – a plan which David Cameron hoped to follow in England and Wales.
The Guardian reports that the EU’s decision to freeze aid to Rwanda due to Rwanda’s support for a rebellion in neighbouring Congo leaves Britain as a continuing aid donor isolate.
In the FT, Samuel Brittan writes, “EU intolerance of criticism is enough to turn me off the project."