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Robert Schuman Foundation Chairman, Jean-Dominique Giuliani pubished an editorial on his site entitled "Europe facing the challenge of Corporatism". He explains that the recent strike by French air traffic controllers, the third since the beginning of the year shows just how selfish corporatism can undermine the effective integration of Europe.
According to results published on 23rd July by the Committee of European Banking Supervisors (CEBS) only 7 of the 91 European banks subject to stress tests, that are designed to check their financial resilience were rejected. These are the German bank Hypo Real Estate, the Spanish savings banks Diada, Cajasur, Espiga, Unnim and Banca Civica as well as the Greek Bank ATE (Agricultural Bank of Greece). These establishments will have to raise funds to enhance their financial resilience that is at present less than that of their competitors. As part of the stress tests two scenarios were set out by the European Central Bank (ECB). The first, the so-called base or central macroeconomic scenario includes growth forecasts that are moderately lower than those put forward by the European Commission. The second, the so-called negative macroeconomic adopts hypotheses that are supported by a serious worsening in the economic environment.
CouncilThe Council, which met on 26th July, adopted a regulation that enhances the measures applicable to the use of statistics in the control of excessive deficits of the Member States. This decision extends the prerogatives of the Union's Statistics Office, Eurostat, thereby enabling it to assess regularly the quality of data provided by the States that show signs of have significant deficit problems.
IMFThe International Monetary Fund (IMF) published its analysis report of the Euro Area on 21st July. We read that the Euro Area succeeded in undertaking effective budgetary and monetary policies to boost its economy. However the IMF warns that austerity measures may affect growth by impeding household consumption. Recovery plans in the Member States should focus on three main axes: to ensure the solidity of the banking system, to consolidate the viability of public finances and encourage the implementation of structural reforms, notably for manufactured goods and labour markets.
SpainThe Spanish Equipment and Transport Minister, José Blanco announced on 22nd July that nearly 200 major infrastructure projects were to be put on hold in Spain. Following the austerity measures decided upon by the Spanish government the ministry's budget will be reduced by 6.4 billion euros. The projects, frozen for four years mainly concern roads, motorways and railways. The ports and airports sectors are however not concerned by this.
France/GermanyGerman Finance Minister Wolfgang Schäuble took part in a French Council of Ministers on 21st July. This symbolic meeting for both countries focused on "European economic governance". With his French counterpart Christine Lagarde he presented joint proposals in view of the next meetings of the working group on European economic governance chaired by Herman Van Rompuy. Paris and Berlin maintained their determination to enhance the European Stability and Growth Pact demanding greater sanctions against European States that fall into chronic deficit. French President Nicolas Sarkozy pleaded in favour of increased fiscal convergence between the two countries. He suggested that to achieve this "a comparative review of the French and German tax systems should be undertaken (...) the convergence of our fiscal systems is a vital detail of our economic integration and the development of the internal market in Europe."
GermanyOn 19th July the German Finance Minister published his monthly report for July. According to the latter economic recovery in Germany was due to gather pace between April and June and consolidate in the second half of 2010. According to experts at the Finance Ministry this acceleration in recovery is due amongst other things to the building industry making up for lost time as well as the dynamism that has "clearly increased in the industrial sector". In addition to this the German economy is experiencing a mini boom as witnessed by the Ifo's industrial barometer in July (published on 23rd July) that revealed its highest increase since reunification 20 years ago. The Ifo business climate index rose to 106.2 points - the level it was at three years ago after 101.8 points in June. This figure was a total surprise to economists who were counting on slight recovery only.
HungaryOn 23rd Hungary has again been placed under surveillance by the indexing agency Moody's after the suspension of negotiations with the IMF and the EU. The agency declared that it was considering a possible reduction of Hungary's score due to the country's budgetary and economic outlook. This was a warning for Viktor Orban's new government whilst Parliament adopted measures designed to bring the public deficit to 3.8% of the GDP on 22nd July. His government imposed a 0.45% tax on the financial results of banks that are working in Hungary. Budapest announced that it did not want to negotiate another loan with the IMF but preferred to discuss matters with Brussels.
IrelandOn 19th July the financial ratings agency Moody's reduced the sovereign score of Ireland from "Aa1 to Aa2", combining it with a "stable" outlook notably due to the inflation in its debt and its weakened growth outlooks. Moody's speaks of three main factors that justify its decision starting with the worsening of public finance, "illustrated by a significant increase in the debt level," the reimbursement of the public debt that weighs increasingly on the State budget.
During her visit to Brussels on 19th July the President of the Helvetic Confederation Doris Leuthard spoke with the President of the European Council Herman Van Rompuy, the President of the Euorpean Commission José Manuel Barroso, European Commissioner for the Internal Market and Services Michel Barnier and the European Commissioner for Fiscality Algirdas Semeta. Insitutional issues were the centre of discussions. The President of the Confederation and Mr Barroso agreed on the creation of a joint working group. This group is due to look into institutional issues, notably with regard to means to adapting developments in the community acquis, the interpretation of agreements and the settling of disputes. He is due to present the first results before the end of the year.
On 20th July as part of the cooperation and verfication mechanism established on 1st January 2007 when Bulgaria and Romania joined the EU, the European Commission published its annual reports on the progress achieved by these two countries in terms of reforming their legal systems and in their fight to counter corruption. The conclusions of these annual reports reveal constrasted results. Although the Commission points to work undertaken by Bulgaria and encourages it to continue it highlights slacking on the part of Romania and provides it with a series of recommendations to help it in this process.
ConsumersAccording to estimates published by the European Commission on 22nd July the European Consumer confidence indicator rose significantly in July (-14.1 points against -17.3 points in June)in all Euro area countries. Consumer confidence in the EU also improved although not as much to reach -13.8 points against -14.9 points in June.
Personal DataOn 20th July in a communication the European Commission presented a panorama of the EU's tools that govern the collation, storage and exchange of personal data for law enforcement purposes or for the management of migratory flows. In parallel the fundamental principles that should be used as a base to assess information management tools in the space of freedom, security and justice are also set out; they will also guide the design of future collation tools, storage or information exchange. The principles focus notably on fundamental rights, proportionality, the rigorous management of risks, the clear distribution of responsibilities, the cost-efficacy ratio and re-examination clauses.
Raw MaterialsThe European Commission which advised on 22nd July the constitution of strategic rare mineral reserves in the EU - these are used in leading edge industries- together with the creation of a geological service has just launched a consultation in order to draw up proposals in this direction in "November or December". Indeed according to a recent report by a group of experts as part of the EU initiative framework with regard to raw materials. Europe is in a vulnerable position as far as some of these materials are concerned: of 41 minerals and metals analysed 14 are a problem according to the experts.
JusticeOn 20th July the European Commission proposed to provide national police forces with a written declaration of the rights they read out to suspects - the declaration that exists in 22 languages is to be given to each Union citizen under suspicion of a criminal act during his arrest. Although the Member States are free to choose how the declaration is formulated the Commission will provide a model to guarantee greater coherence and limit translation costs. At present in some Member States suspects only receive oral information about their procedural rights whilst in others written information is complex and is only provided on request. The Commission's proposal will help prevent judicial errors and reduce the number of appeals and therefore strengthen confidence in the European area of justice.
ITER/FinancesOn 20th July the European Commission suggested that it should finance the surplus costs of the demonstration fusion reactor, ITER, by using funds allocated to the 7th Framework Research Programme (100 million euros in 2012, 360 in 2013) as well as 400 million euros from other unused budgets. The aim of this international project is to show the potential of nuclear fusion thereby opening the way to a safe, inexhaustible source of energy that is cheap and which does not emit CO2. This proposal follows the request put forward by the Council on 12th July to meet the sharp rise in the overall cost of ITER.
Fight/TerrorismOn 20th July the European Commission adopted a communication in which it reviewed the results of the main measures (fight against propaganda and terrorist recruitment, measures that aim to prevent attacks, prevention of chemical, biological and nuclear threats) set in place since 2005 as part of the European strategy to fight against terrorism including four pillars comprising "Prevention, Protection, Pursuit and Response". The communication describes the achievements as well as the challenges and planned initiatives thereby establishing the foundations of a wider strategy for internal security set out for the autumn.
WTO/AirbusOn 21st July the EU made an appeal to the WTO against the report made by the special group relative to the support of Airbus (DS316), published on 30th June last. Although the report sides with the EU by rejecting a significant number of complaints issued by the USA it lists other points that require correction and clarification.
The EU's High Representative for Foreign Affairs and Security Policy, Catherine Ashton took part in an international conference in Kabul on 20th July rallying representatives from over 70 donor countries. Participants expressed their suppport for Hamid Karzai's project gradually to take on greater responsibility in the management of his country's affairs and to guarantee full security as from 2014. They also gave their support to the Afghan government's "reconciliation programme" with the Taliban. In addition to this Catherine Ashton presented the priorities in continuing the EU's work in Afghanistan which includes the reform of the justice and police sectors as well as Human Rights.
IcelandOn 26th July the EU decided to open negotiations in view of Iceland's accession to the EU as from 27th July but many governments doubt the island's real desire to join and there are many obstacles still to overcome including fisheries and Icesave.
The European Central Bank (ECB) announced on 19th July that the seizures of counterfeit euro bank notes declined by 13% in the first semester of 2010, compared with the second half of 2009 which is the first decrease in nearly four years. In all 387,000 counterfeit notes were withdrawn from circulation in the first six months of the year ie a decrease of 13% in comparison with the previous six months according to an ECB press release. In the second half of 2009 the number of counterfeit notes seized increased by 8% to total 447,000.
During the press conference on 21st July that traditionally precedes the summer recess in Berlin German Chancellor Angela Merkel made a positive review of German policy. According to Ms Merkel Germany has resisted rather well to the economic and financial crisis; it is emerging strengthened from it. Internationally "our way of managing problems has earned us a certain amount of acknowledgement," she stressed. According to Ms Merkel the German government has set good priorities on a political scale, notably with its measures for recovery to counter the crisis, the extension of the law on the minimum wage in new sectors, support programmes for the significant development in the production of electric cars as well as the launch of a new programme for study grants. The Chancellor announced major decisions for the autumn.
CyprusOn 23rd July German Foreign Minister Guido Westerwelle who was visiting Cyprus met his Cypriot counterpart Markos Kyprianou. It was the first official bilateral visit of a German Foreign Minister. The two ministers discussed the island's situation, together with that of Gaza and Kosovo. Mr Kyprianou recalled that the creation of two States would not be a good solution for the island. Mr Westerwelle called for constructive action in a spirit of consensus.
On 20th July Austrian Chancellor Werner Faymann received his Bulgarian counterpart Boïko Borissov in Vienna. The two leaders discussed the economy and the fight to counter corruption. Mr Faymann said that Austria and Bulgaria were working together closely in order to fight crime. Moreover he pointed to the successes of the Bulgarian government in its fight against corruption that had been published in a recent EU report. The Bulgarian Prime Minister declared: "in the EU's report the political will with regard to the fight against organised crime was recognised in particular. It is extremely important for Bulgaria in view of its preparations to join the Schengen Area." The completion of the Danube Strategy was also addressed: "Austria and Bulgaria are striving towards the same goals in this domain."
On 23rd July Spain adopted a decision/law that aims to open Spain air control up to the competition. Airport management may now be ensured in airports with low volumes of traffic by private service suppliers. They will be certified by the State Air Security Agency who will ensure "continued supervision". With the adoption of the law the European standard "Single European Sky" has entered Spanish law.
BanksOn 21st July the Spanish parliament adopted the reform of the law governing regional savings banks that will lead to a limitation in the influence of local political powers over their management and help them raise funds more easily. Finance Minister Elena Salgado believes that this reform was "the most important ever taken in this sector since the 19th century," and that it "would enhance the country's financial system." The new law limits the voting rights that local administrations and public bodies can have over the management boards of banks to 40% against 50% before.
Russian President Dmitri Medvedev travelled to Finland on 20th and 21st July. He met Finland's President Tarja Halonen as well as Finnish Prime Minister Mari Kiviniemi. Mr Medvedev and Ms Halonen discussed the new European security architecture, the development of the strategic partnership between the EU and Russia and in particular the repeal of the visa system with the EU countries and the partnership for modernisation. During a joint press conference the Russian president launched a new appeal to the EU with regard to repealing visa requirements between Russia and Europe and he requested Finland's aid in this respect.
The President of the French Republic Nicolas Sarkozy received Doris Leuthard, the President of the Helvetic Confederation at the Elysee on 21st July. During the meeting issues relating to the preparation for the G20 were addressed, relations between the EU and Switzerland as well as certain bilateral and international issues. Ms Leuthard announced that main convergence in opinion existed between France and Switzerland with regard to the main G20 subjects - the next meeting of which will be chaired by France in November 2010 and November 2011. Mr Sarkozy believed that Switzerland should "be associated early on in the preparation of the G20."
TerrorismOn 26th July French President Nicolas Sarkozy confirmed the death of French hostage Michel Germaneau in the Sahara responsibility for which was claimed by Al-Qaeda in Islamic Maghreb; he denounced a "barbarous, odious act" in one solemn declaration at the Elysee Palace. "They killed a sick 78 year-old in cold blood and they had previously refused to bring him the medicines he required," declared the president. "I condemn this barbarous act, this odious act that caused the death of an innocent victim who helped local populations," added the head of State who had just rallied a "security and defence council."
On 21st July Greece expressed its support to Cyprus with regard to the proposals made by Cypriot President Demestris Christofias to speed up ongoing talks that aim to reunify the island that has been divided for the last 36 years. President Christofias's proposals "show that he is a step ahead in the initiatives taken to settle the Cypriot issue," declared Greek Prime Minister George Papandreou to the press after a meeting with Mr Christofias at the airport of Larnaca.
On 21st July Hungarian Prime Minister Viktor Orban travelled to Berlin where he met German Chancellor Angela Merkel. During a press conference, Ms Merkel pointed to the close collaboration and friendly links between Hungary and Germany. From an economic point of view she said that even though Hungary was not in the Euro Area it should as an EU Member State respect the Union's budgetary criteria setting the budgetary deficit at a limit of 3%. Mr Orban said: "We are slowly becoming the world champions with regard to reducing spending," adding that Hungary would succeed in reducing its deficit to 3.8% of the GDP in 2010 as agreed with the IMF and the EU against a loan of 20 billion euros.
In June Italian exports to extra-EU countries increased by 26.4% and imports by 37.4% in comparison with the same period the previous year according to statistics issued by the National Statistics Institute (Istat) on 20th July. Italy recorded a trade deficit of 1.064 million euros in comparison with a surplus of 77 million euros in June 2009. This situation is however mainly due to energy imports without which the country would record a surplus of 14.266 million euros. On a monthly basis exports are up by 9.2% and imports by 2.9%.
RussiaRussian President Dmitri Medvedev and Italian head of government Silvio Berlusconi re-iterated on 23rd July their intention to increase their economic cooperation notably in the nuclear area. During a joint press conference Mr Medvedev invited Italian businesses to help Russia in the nuclear, space, telecoms and pharmaceutical industries.
Negotiations that were started on 5th July in view of forming a government coalition between the Liberals (VVD) and the left in the Netherlands failed. The hypothesis of a government coalition including Geert Wilders' party (PVV) rose to the surface again after the Christian Democrats (CDA) accepted the launch of exploratory discussions on 24th July with this party as well as with the Liberals who emerged the winners of the general elections that took place on 9th June last.
Helena Vasquez has just been appointed political advisor on the crisis in Kyrgyzstan to work with the EU Special Envoy for Central Asia, Pierre Morel. She is due to help acquire better knowledge of the situation in the country since the riots in April 2010 that led to the deaths of many and caused major population displacements. Helena Vasquez was recruited by CRT (EU's Civilian Response Team), created by Sweden in 2004. This comprises European experts who work on crisis situations in the world and look for solutions to settle them.
On 20th July the British Prime Minister David Cameron started his first official visit to the USA since his election in May 2010. The aim of this visit is to reconstruct "the special relationship" entertained by the two countries. David Cameron and Barack Obama agreed on the strategy to undertake in Afghanistan which comprises the transfer of the country's security over to the Afghans via the training of the Afghan army and policeforces and to plan for the withdrawal of the Anglo-American troops. Iran, bilateral exchange, and the BP/Lockerbie affair were also on the agenda.
Blog/EUBritish Minister for Europe David Lidington suggested on his blog that he should recieve comments and questions with regard to European policies in the UK. Internet users have until 27th July to question the minister who will answer by video on 30th July on his blog.
On 21st July the Appeals Chamber of the ICTY ordered that a new trial be held for former Prime Minister of Kosovo, Ramush Haradinaj. As a former leader of the Kosovo Liberation Army (UCK) he was tried in 2008 and found not guilty of war crimes and crimes against humanity. Mr Haradinaj is again being prosecuted for war crimes including murder, cruel treatment and acts of torture. He will be judged with two other suspects Idriz Balaj and Lahi Brahimaj, former UCK commanders. It is the first time that suspects are being tried again at the ICTY.
In a consultative opinion published on 22nd July the International Court of Justice said it believed that Kosovo's declaration of independence did not infringe international law. The Court which was addressed by the General Assembly of the UN on 8th October 2008 concluded that the declaration of 17th February 2008 did not infringe either general international law nor the Security Council's resolution 1244. However the international judges could only decide on the conformity of the declaration with international law; the Court insisted on saying that it was not responsible to say whether Kosovo had achieved the status of State and that this decision did not comprise a precedent. Serbia announced that it would not acknowledge independence. The EU welcomes this decision that opens "a new stage" and says it is ready to "facilitate a process of dialogue between Pristina and Belgrade" because the future of the two countries lay in the Union.
AidsNowhere else in the world are there so many new HIV infections than in Eastern Europe and Central Aisa where 80% of new HIV positive cases are under 30 years of age according to a report published on 19th July by UNICEF during an international conference on AIDS in Vienna. Entitled "Blame and Banishment, the epidemic that affects children in Eastern Europe and Central Asia" this report totals around 1.5 million new HIV cases in this region in comparison with 900,000 in 2001. In some parts of Russia the occurence of new cases has even reached 700% according to the UN Children's Agency.
According to provisional data published on 22nd July by Eurostat the EU's external current account recorded a deficit of 34.8 billion euros in the first quarter of 2010 against a deficit of 50.6 billion in the first quarter of 2009 and a deficit of 13.4 billion in the fourth quarter of 2009. In the first quarter of 2010 the EU's current account recorded a surplus with the USA (+14.1 billion euros), Switzerland (+4.4 billion), Hong Kong (+4.1 billion), Brazil (+3 billion), Canada (+2.2 billion) and India (+0.9 billion) as well as a deficit with China (-30.9 billion), Russia (-13.5 billion) and Japan (-7 billion).
IndustryAccording to estimates published on 22nd July by Eurostat the index of new industrial orders in the euro area increased by 3.8% in May 2010 compared with April 2010. In April the index rose by 0.6%. In the EU new orders increased by 2.7% in May 2010 after a 0.3% rise in April. Excluding naval construction as well as railway and aerospace equipment whose variations tend to be more volatile new industrial orders recorded a rise of 2.6% in the euro area and 2.7% in the EU. Year on year new industrial orders increased respectively by 22.7% and 20.1%.
A Eurobarometer inquiry published on 20th July shows that Europeans want EU countries to do more in favour of road security. 94% of Europeans think that alcohol whilst driving is the main problem in terms of road security, 78% believe that excessive speed is a major problem. Most of those interviewed (52%), think that EU countries should as a priority improve road infrastructures; 42% of them believe it is a priority to impose the respect of the law of the road and 36% believe that this code should be applied in the same way to foreign drivers as to local drivers. In addition to this the Commission adopted an ambitious programme for road security on the same day thereby aiming to reduce the number of deaths on the roads by half over the next decade.
The annual report by the European Commission on customs interventions by the EU aiming to enforce intellectual property rights (IPR) published on 22nd July indicate that the European customs authorities intervened in 2009 in 43,500 cases that represented several million products that were suspected of being counterfeit or pirated. Cigarettes, clothes, trade marks featured amongst the main articles intercepted by the customs authorities. Everyday products that were revealed potentially dangerous for citizens' health such as shampoo, toothpaste, toys, medicines and domestic appliances also comprise a major share of the seizures. The report gives statistics on the type, origin and transport method of IPR infringing products stopped at the external borders.
WTOThe World Trade Organisation (WTO) published its annual report "World Trade 2010" on 23rd July on world trade. The issue of natural resources is the main focus. The WTO hopes for greater cooperation between governments that must privilege negotiations and compromise in their international relations on the trade of natural resources. In this specific domain public intervention must not necessarily be punished but trade restrictions are to be banned because of their influence over prices says the WTO.
UKThe think-tank Chatham House published a study on British policy with regard to the USA and the EU entitled "Between Faith and Reason: UK Policy Towards the USA and the EU", written by Anand Menon.
Documentation française has published a study by Stéphane Saurel in its series "Réflexe Europe" on "Le Budget de l'Union européenne" (The EU Budget). Budgetary issues feature amongst the most sensitive, complex stakes but they are also the most stimulating in European integration: they give an idea of the level of integration achieved by the EU. This study attempts to provide the necessary information to understand future discussions.
The famous festival devoted to the operas of Richard Wager created by the composer himself in 1876 is taking place in Bayreuth until 28th August. It will be inaugurated with a new production of "Lohengrin". The programme includes the four parts of the "Ring" as well as "Parsifal" and the "Mastersingers of Nuremberg."
Festival/MarciacFrom 30th July to 15th August the 33rd edition of Jazz in Marciac will take place in the Gers. On the agenda, the trio from Israel, comprising pianist Yaron Herman, together with bassist Chris Tordini and drummer Tommy Cran for an inaugural concert. Then it will be the turn of Diana Krall to come on stage with Anthony Wilson (guitar), Robert Hurst (bassist), and Karriem Riggins (drummer). The Canadian will present his latest work Quiet Nights.
Festival/BregenzThe 65th edition of the Bregenz festival entitled "In der Fremde" (In a Strange Land) was inaugurated on 21st July by Austrian President Heinz Fischer. The festival which takes place on the shores of Lake Constance is offering a series of operas, operettas, orchestral concerts, plays and other cultural events until 22nd August. On the programme are notably Giuseppe Verdi's "Aida" and "The Passenger" by Mieczyslaw Weinberg.
Festival/PianoThe International Piano Festival of the Roque d'Antheron is celebrating its 30th birthday. On this occasion the festival invited leading jazz players and rising stars in the classical piano world. The organisers are devoting the 2010 festival to Paul Onoratini, the festival's co-founder in 1980 (with René Martin) who died in January. Until 22nd August the Roque d'Antheron will host nearly 100 pianists including jazz man McCoy Tyner and Chick Corea, veterans Aldo Ciccolini and Pierre Boulez and young musicians aged 14 to 23.
Expo/BerlinThe Pergamon Museum of Berlin is putting on an exhibition until 3rd October entitled "Bunte Götter. Die Farbigkeit antiker Skulputur" (Colourful Gods. The Colours of Ancient Sculpture).
Exhibition/ViennaThe Kunsthistorisches Museum in Vienna is devoting an exhibition to the marriage of Napoleon Bonaparte with Marie-Louise of Austria until 31st December - it is entitled "Napoleon's Marrigage" on the bicentary of this event.
Exhbition/CastlesThe National Germanic Museum of Nuremberg and the German Historic Museum of Berlin are putting on a grand exhibition of fortified castles in Europe. The Nuremberg exhibition entitled "Mythos Burg" (The Myth of the Fortified Castle), is presenting 650 pieces that come from famous collections - some of them international util 7th November. The Berlin exhibition entitled "Burg und Herrschaft" (Fortified Castles and Masters) focuses on relations between the castle and power; it is on show until 24th October.
Palio/SiennaThe Palio in Sienna is a traditional bare back horse race that takes place each year in Sienna in Tuscany at the historical heart of the town on the famous "Piazza del Campo". The Palio of Sienna takes place twice a year; the next race is planned for 16th August (Palio dell'Assunta).
Negotiations in Bonn (Germany) on Climate Change
Meeting of Governors of the Central European Bank (ECB)
Informal Foreign Affairs Council
Plenary Session of the European Parliament
General Elections -Sweden
