Merkel denies French Finance Minister’s claims of imminent Greek bailout
01 March 2010
The Telegraph reports that German Chancellor Angela Merkel has denied claims by other EU politicians that
However, speaking to ARD Television, Merkel said, “That is definitely not the case. We've got a treaty that does not include any provision for bailing out states. We can best help
In an interview with Europe 1 radio, Christine Lagarde,
The Telegraph notes that both the Free Democrats and Bavarian Christian Social Union (CSU) in Merkel’s coalition have raised doubts over use of KfW for a Greek rescue, viewing any diversion of funds as an abuse of its core role as banker for small family firms. The Bundestag's Finance Committee has also questioned whether it is legal for German state bodies to buy eurozone debt. The Spiegel quotes Professor Paul Kirchhof, a leading German jurist, arguing that bail-out plans are in breach of
Meanwhile, the Observer notes that EU Economic Affairs Commissioner Olli Rehn has flown into
The WSJ notes that Juncker, European Central Bank President Jean-Claude Trichet and French President Nicolas Sarkozy have reiterated that turning to the IMF would undermine the credibility of the euro. German Chancellor Angela Merkel is reportedly more open to a deeper IMF role. It notes that the IMF-EU relationship is further complicated by the French Presidential election in 2012. IMF Managing Director Dominique Strauss-Kahn, who is polling higher than Mr. Sarkozy, has said he is considering a run and a big role for the IMF in helping resolve the Greek crisis could help any presidential bid.
Business Week notes that billionaire investor George Soros has said that the euro “may not survive” the Greek deficit crisis. A poll for Swedish Television shows that 50% of Swedes are now against the country joining the eurozone. 39% are in favour of joining the euro, while 11% are undecided. When the same question was asked in April 2009, 47% were in favour of the euro, while 45% were against.
Meanwhile, Business Secretary Lord Mandelson has reiterated that he thinks the
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Jean-Claude Juncker: EU has “torture instruments in the cellar” to punish euro speculators
Speaking about the added pressure on
European Parliament criticised for handing out cash in envelopes while MEPs vote for increased allowances
Saturday’s Express looked at the European Parliament’s expenditure, noting that last year more than £70,000 was spent on ski holidays for families of Parliament officials and that hundreds of pounds has been handed out in brown envelopes to visitors to cover food and travel with no receipts needed. Open Europe Director Mats Persson was quoted saying: “The European Parliament already has a terrible reputation for wasting taxpayers’ money. Now we hear that citizens’ cash is being handed over, ready-packaged, in brown envelopes without a second thought.”
Meanwhile, the NOTW reported that MEPs have awarded themselves £12 million in extra allowances including an additional £1,300 a month each to pay staff plus cash to hire another 150 aides to cope with the increased workload created by the Lisbon Treaty. The increase will come on top of the £15,447-a-month they get to pay assistants, a “general allowance” worth over £44,000 a year, and a £265-a-day “subsistence allowance” when they are at Parliament. Mats was quoted saying, “The last thing taxpayers want to hear is that Euro-MPs are getting even more money.” Open
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EU spends millions on dubious culture projects
The Sunday Express reported that the European Commission is spending millions of euros of taxpayers’ money on “meaningless” cultural projects. The European Joysticks Orchestra has been handed more than £50,872 to compose works, host concerts and train teachers in the “art” of creating music using the computer device. The European Laboratory for Hip Hop Dance will net £44,931 of taxpayers’ cash to “improve the recognition and visibility of hip hop dance in
French-German strategy paper sets out eurozone ‘economic government’;
EU 2020 Strategy will force member states to present annual economic plan to EU
Der Spiegel looks at the plans for a eurozone ‘economic government’, outlined in a German-French strategy paper, prepared by Finance Ministers of both countries. According to the plans, the European Council and the European Commission would have the mandate to monitor the competitiveness of countries more intensely "in order to keep the eurozone together". The supervision would also be extended to countries such as
Meanwhile, the EU’s economic development plan, Strategy 2020, will be announced this Wednesday, reports the Dutch press. Het Financieele Dagblad predicts that the package will introduce new requirements on member states to present an annual economic plan to the EU, separate from the annual budget plan that they already submit. Member states will be set goals and receive warnings for non-compliance. According to the article, Commission President Barroso also wants to link the new EU 2020 strategy to the Stability and Growth Pact. La Razon notes that the two main goals of the plan will be the creation of 5.6 million new jobs and the achievement of 2% yearly GDP growth by 2020.
Spiegel Het Financieele Dagblad La Razon
The Guardian reports on a leaked diplomatic note from
German and French unnamed sources are complaining that four of the 12 staff appointed to Baroness Ashton's office are British. British officials are also heading several key departments including the EU's intelligence cell, its military staff, and overseeing recruitment to what are to be more than 130 EU embassies abroad, as well as providing Robert Cooper as the EU's top foreign and security policy strategist. European Voice reports that Ashton appointed Poul Skytte Christoffersen,
The Sunday Telegraph reported that a widely held belief in
It quotes another European diplomat saying, “The French, Spanish, Barroso, Van Rompuy, everybody it seems, can pull a fast one and Ashton does not have the authority to stand up to them. The argument that she might be boring but has powers of quiet persuasion simply do not wash any more. If this is the best
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Government report: EU subsidised biomass fuel could be worse for the environment than fossil fuels
The Times reports that according to a new Government report, government biofuel targets could actually be less environmentally friendly than using fossil fuels, as they require millions of acres of forest to be cleared for plantations. The report also notes that some of the most commonly-used biofuel crops fail to meet the minimum sustainability standard set by the European Commission. The Times continue to note that: “The EC has conducted its own research, but is refusing to publish the results. A leaked internal memo from the EC’s agriculture directorate reveals its concern that
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Van Rompuy accused by governments of 'power grab'
The Telegraph reports that national governments are worried over signs that Herman Van Rompuy is looking to expand his position. The EU President’s candidature was reportedly backed by
Telegraph FT: Brussels blog Van Rompuy speech
German MEP warns that Olaf appointment of director breaches EU law
German daily the Spiegel reports that MEP Inge Gräßle has pushed for an examination of anti-corruption law within the EU, following the appointment of an interim director of the EU’s anti-corruption department, the Olaf, without the approval of the European Parliament. According to EU law, the post has to be filled by somebody agreed on by the European Commission, Council and Parliament, yet the appointment was made solely by the Commission and the interim manager may be in the post for over a year.
Saturday’s Spiegel reported that the new Justice Commissioner Viviane Reding has announced that the data retention directive needs to be “put on the stand” before the
This week Michel Barnier will make his first visit to
City AM Le Monde Sunday Telegraph
Times Telegraph: Hannan blog FT
In an opinion piece in the Guardian, Mary Kaldor remarks that the EU is “besieged by regulation culture and market obsession, forgetting its original purpose: peace”, she continues, “The political reforms in the Lisbon treaty were supposed to help Europe to act in a more united way – instead, as has become painfully obvious, it has proliferated ineffective voices. We now have a president of the council, a Spanish presidency, a foreign minister, a president of the commission, not to mention Chancellor Merkel and President Sarkozy.”
Cinco Dias report that the EU has suggested that internet piracy laws could be disproportionate and could conflict with various existing Community Directives.
Dimitri Medvedev will go to
A YouGov poll for the Sunday Times puts the Conservatives on 37%, as against 35% for Labour — the closest gap between the parties in more than two years. The Lib-Dems are at 17%.