Brussels, 18 February (9am to 5.30pm): Info day (open to all)
Registration online / Live webstreaming at:
http://eacea.ec.europa.eu/static/en/mundus/infoday_2009_en.htm
EU Commissioner for education, and culture, Jan Figel, launched here
Monday evening the new EU scholarship programme for non-EU countries,
Erasmus Mundus II, for the period 2009-2013.
The Earsmus Mundus programme offers the opportunity to third-country
students to obtain a degree in Europe, and to academics to share
know-how and to contribute to study programmes through teaching or
research activities whilst avoiding the brain drain and favouring
vulnerable groups
In 2009-13, the EU will increase its support to the most
highly-talented students and professors from countries outside the EU
with grants to take part in joint programmes in Europe.
It will also extend the scope of the programme to the doctoral level
and give more financial support to European students.
The expected budget for Erasmus Mundus II will be an indicative amount
of 950 million Euro.
The Erasmus Mundus I from 2004 - 2008 offered more than 10,000
scholarships to students and academics from all over the world, with a
combined budget of 609 million Euro.
It contributed 33 million Euro (2005-2009) for scholarships to Indian
post-graduate students .
Erasmus Mundus 2009-2013 is a cooperation and mobility programme in
the field of higher education that aims to enhance the quality of
European higher education and to promote dialogue and understanding
between people and cultures through cooperation with third countries.
The Erasmus Mundus programmes provides support to:
higher education institutions that wish to implement joint programmes
at postgraduate level (Action 1) or to set-up inter-institutional
cooperation partnerships between universities from Europe and targeted
Third-Countries;
individual students, researchers and university staff who wish to
spend a study / research / teaching period in the context of one of
the above mentioned joint programmes or cooperation partnerships;
any organisation active in the field of higher education that wishes
to develop projects aiming at enhancing the attractiveness, profile,
visibility and image of European higher education worldwide.
The Education, Audiovisual and Culture Agency Executive Agency (EACEA)
is responsible for the management of all actions of Erasmus Mundus
2009 - 2013, under the supervision of the Directorate-General for
Education and Culture (DG EAC of the European Commission) and
EuropeAid - Co-operation Office (DG AIDCO of the European Commission).
Information and guidance at national level can be obtained from the
Erasmus Mundus National Structures.
Showing posts with label Euro. Show all posts
Showing posts with label Euro. Show all posts
Tuesday, February 17, 2009
Wednesday, May 28, 2008
A decade of the Euro
Financial pundits want one Euro voice internationally
With the launch of Euro a decade ago, much was written in the pro-dollar media and the EMU, as the Eurozone is called, was compared with “EMU,” the bird that cannot fly. But then compared to the launch and subsequent drop as the nascent currency took baby steps, the Euro has come of age today gaining nearly 50 percent against the American dollar, the so-called Universal currency.
Financial pundits participating in the annual Brussels Economic Forum conference unanimously voiced the opinion that the Euro, the single European currency, is proving to be a blessing for the Eurozone during the rough turbulent times in the international financial scenario. Pointing out the benefits, European Economic and Monetary Affairs Commissioner Joaquin Almunia told the audience last week, “EMU has created a zone of macroeconomic stability in Europe.
From day one, the Euro put an end to traumatising exchange rate realignments. Were we without the single currency today, the present dollar weakness would be placing enormous strains on the Euro area economies- for some more than others- and would be having a serious impact on trade and investment. We ought to recall this simple fact, for those who forget our past monetary turbulences.”
Going down memory lane, the Commissioner highlighted how the unifying force of the Euro was helping the Eurozone weather the financial storms, “Indeed, we are much more resilient to external shocks thanks to EMU. This has enabled us to withstand the economic consequences of, among other events, the 9/11 terrorist attacks and the bursting of the dotcom bubble. And let there be no doubt that without the shielding effect of the single currency, we would be feeling much more strongly the impact of the current financial turmoil and soaring energy and food prices.”
“And EMU’s successes extend beyond the Euro area. We can be proud to share a currency that is now the second most important in the world. This international status, plus the economic weight of the Euro area, with its credible macroeconomic framework, has allowed EMU to become a pole of stability in the global economy, particularly during the recent period of turbulences.”
In addition to tightening the internal system by reforms, the Commissioner called for “a strong case for the Euro area to increase” its presence in the global arena.
“Our currency is the second most important in the world. Our policy decisions have a global impact and increasingly the Euro area is helping to support the stability of the global economy and financial system. This role brings undoubted advantages, ranging from seniorage revenues and a capacity to place securities among foreign investors at lower interest rates, to certain competitive advantages for Euro area exporters and financial institutions.”
Warning about “risks and responsibilities,” that come with “the exposure of the Euro area – including its financial system – to shocks originating in other parts of the world and to disruptive portfolio shifts between key international currencies,” the Commissioner said, “the Euro area must build an international strategy so that it can play a full part in pursuing global stability and project and defend its interests in the world.”
Urging the Eurozone nations to join hands to put a unified front on the international financial scenario, Almunia said, “This means first developing common positions on international issues so that we can speak with a strong single voice. Once accomplished, the logical next step will be to consolidate our representation and obtain a single seat in international fora.”
At the conference, Almunia was joined by the head of the International Monetary Fund, Dominique Strauss-Kahn, in these calls for unifying Eurozone voices in the international arena. “While the ECB has established itself in a number of international fora, Euro area member states have not yet made as much progress in developing and articulating a common view on broader macroeconomic issues. As a result, too little attention is paid at the global level to the Euro area’s economic challenges.”
Strauss-Kahn told the select gathering of financial experts. “At 10 years old, the Euro area is still a club that people want to join. This is perhaps the strongest indication of its continued success and good prospects,” Strauss-Kahn added, appealing to the EU member states to overcome their political and economic differences and added that the Eurozone lacks the political clout that it should have had by now.
Jean-Claude Juncker, the Prime Minister of Luxembourg and the voice of the 15-member Eurogroup voiced optimism at the Forum saying, “In the long term, the Eurozone will be represented in the IMF by one single seat.”
Lamenting the fact that incoming Eurozone finance ministers talk of a single representation at the IMF but forget all about it once in office, Eurozone Chairman Juncker challenged the French President to keep his word, “Mr (Nicolas) Sarkozy, also talked about a single representation in the IMF before he became president (of France). He still has four years (in office). I would encourage him to come back to this soon.”
Today, each of the 15 Eurousing European countries has individual representations at the IMF, an international organisation overseeing the global financial system with a key role in the global economic arena.
On the sidelines of the Forum, political pundits told New Europe, “Let us not forget that Euro has replaced 15 European currencies and some of them like the German mark, French franc and Italian lira were backed by strong economic and industrial giants of the world.
“With the Euro surging not only in value but also as a dependable currency, the world commodity markets, especially relating to oil, will start contemplating a switch to Euro to protect themselves against instable or falling dollar,” they said, and that a strong political will is needed to give the required unified voice to the Eurozone, argued some of the best visionaries in the field.
Almunia aptly concluded with the call for a broad debate to chart out a more unifying fiscal policy to guard interests of ordinary European citizens saying, “EU citizens face a future of rapid changes and greater uncertainty. Economic and Monetary Union must provide stability, prosperity and a platform to represent their interests in the wider world. In the next years we must update our vision of EMU and re-focus the policy framework to achieve this goal.”
With the launch of Euro a decade ago, much was written in the pro-dollar media and the EMU, as the Eurozone is called, was compared with “EMU,” the bird that cannot fly. But then compared to the launch and subsequent drop as the nascent currency took baby steps, the Euro has come of age today gaining nearly 50 percent against the American dollar, the so-called Universal currency.
Financial pundits participating in the annual Brussels Economic Forum conference unanimously voiced the opinion that the Euro, the single European currency, is proving to be a blessing for the Eurozone during the rough turbulent times in the international financial scenario. Pointing out the benefits, European Economic and Monetary Affairs Commissioner Joaquin Almunia told the audience last week, “EMU has created a zone of macroeconomic stability in Europe.
From day one, the Euro put an end to traumatising exchange rate realignments. Were we without the single currency today, the present dollar weakness would be placing enormous strains on the Euro area economies- for some more than others- and would be having a serious impact on trade and investment. We ought to recall this simple fact, for those who forget our past monetary turbulences.”
Going down memory lane, the Commissioner highlighted how the unifying force of the Euro was helping the Eurozone weather the financial storms, “Indeed, we are much more resilient to external shocks thanks to EMU. This has enabled us to withstand the economic consequences of, among other events, the 9/11 terrorist attacks and the bursting of the dotcom bubble. And let there be no doubt that without the shielding effect of the single currency, we would be feeling much more strongly the impact of the current financial turmoil and soaring energy and food prices.”
“And EMU’s successes extend beyond the Euro area. We can be proud to share a currency that is now the second most important in the world. This international status, plus the economic weight of the Euro area, with its credible macroeconomic framework, has allowed EMU to become a pole of stability in the global economy, particularly during the recent period of turbulences.”
In addition to tightening the internal system by reforms, the Commissioner called for “a strong case for the Euro area to increase” its presence in the global arena.
“Our currency is the second most important in the world. Our policy decisions have a global impact and increasingly the Euro area is helping to support the stability of the global economy and financial system. This role brings undoubted advantages, ranging from seniorage revenues and a capacity to place securities among foreign investors at lower interest rates, to certain competitive advantages for Euro area exporters and financial institutions.”
Warning about “risks and responsibilities,” that come with “the exposure of the Euro area – including its financial system – to shocks originating in other parts of the world and to disruptive portfolio shifts between key international currencies,” the Commissioner said, “the Euro area must build an international strategy so that it can play a full part in pursuing global stability and project and defend its interests in the world.”
Urging the Eurozone nations to join hands to put a unified front on the international financial scenario, Almunia said, “This means first developing common positions on international issues so that we can speak with a strong single voice. Once accomplished, the logical next step will be to consolidate our representation and obtain a single seat in international fora.”
At the conference, Almunia was joined by the head of the International Monetary Fund, Dominique Strauss-Kahn, in these calls for unifying Eurozone voices in the international arena. “While the ECB has established itself in a number of international fora, Euro area member states have not yet made as much progress in developing and articulating a common view on broader macroeconomic issues. As a result, too little attention is paid at the global level to the Euro area’s economic challenges.”
Strauss-Kahn told the select gathering of financial experts. “At 10 years old, the Euro area is still a club that people want to join. This is perhaps the strongest indication of its continued success and good prospects,” Strauss-Kahn added, appealing to the EU member states to overcome their political and economic differences and added that the Eurozone lacks the political clout that it should have had by now.
Jean-Claude Juncker, the Prime Minister of Luxembourg and the voice of the 15-member Eurogroup voiced optimism at the Forum saying, “In the long term, the Eurozone will be represented in the IMF by one single seat.”
Lamenting the fact that incoming Eurozone finance ministers talk of a single representation at the IMF but forget all about it once in office, Eurozone Chairman Juncker challenged the French President to keep his word, “Mr (Nicolas) Sarkozy, also talked about a single representation in the IMF before he became president (of France). He still has four years (in office). I would encourage him to come back to this soon.”
Today, each of the 15 Eurousing European countries has individual representations at the IMF, an international organisation overseeing the global financial system with a key role in the global economic arena.
On the sidelines of the Forum, political pundits told New Europe, “Let us not forget that Euro has replaced 15 European currencies and some of them like the German mark, French franc and Italian lira were backed by strong economic and industrial giants of the world.
“With the Euro surging not only in value but also as a dependable currency, the world commodity markets, especially relating to oil, will start contemplating a switch to Euro to protect themselves against instable or falling dollar,” they said, and that a strong political will is needed to give the required unified voice to the Eurozone, argued some of the best visionaries in the field.
Almunia aptly concluded with the call for a broad debate to chart out a more unifying fiscal policy to guard interests of ordinary European citizens saying, “EU citizens face a future of rapid changes and greater uncertainty. Economic and Monetary Union must provide stability, prosperity and a platform to represent their interests in the wider world. In the next years we must update our vision of EMU and re-focus the policy framework to achieve this goal.”
Sunday, March 9, 2008
Decline of the American dollar
Fiscal policies over the years take toll on the greenback
The days when the greenback ruled with absolute supremacy and simultaneously commanded the unparalleled confidence of chiefs of international and domestic financial institutions along with the man in the street in the remotest parts of the planet are over. The American dollar is no more “The Currency” that can be relied on for value, as was evident by a recent CNN news clip showing an antique store in New York preferring Euro over the local currency.
Since World War II, when the American dollar started replacing gold as a means of transaction on the international level, the dollar has taken some hard knocks in recent years.
With the launch of the Euro nearly a decade ago, much was written in the pro-dollar media and EMU, as the Eurozone is called, and it was compared with the “EMU,” a bird that cannot fly. But then, compared to the launch and subsequent drop as the nascent currency took baby steps, the Euro has come of age and has crossed the threshold One Euro=USD 1.5 plus. And the dollar has also lost against the other leading currencies, like the Japanese Yen and British Pound.
With the way things are going, one must understand why and when the American dollar got to that place on the pedestal. Only then does it become clear what is happening now. As mentioned earlier, a walk down memory lane shows that till World War II the exchange rates of major currencies were reflected in terms of the price of gold in the respective countries, but with the manipulation of costs of other goods then, gold was a growing discomfort among trading partners across the globe, and the dollar came as a suitable solution.
World War II ended with the emergence of the United States as the dominant military and economic powerhouse, and as countries gathered to this epiccentre for military and financial support, the dollar emerged as the financial powerpoint of the financial world.
With the issuing of US government securities there was an added charm of earning interest over dollar deposits.But to the discerning eye, there was a Catch-22 situation that stayed afloat all these decades - and still is. The use and abuse of the technical term “Balance of Payments” was so rampant by the US that one shudders to look at the figures over the years. The United States consumed more than it produced, financing the payments with printed paper and all had been well till 1971 arrived.
The US devalued the “International Currency” unilaterally. Internationally-held dollar reserves overnight lost value and that was quite a hard knock for some of the poor countries of the world.Five years later, in 1976, came the Jamaican Agreement that gave the financial world a floating exchange rate system where the markets started playing a lead role.
But again, it was not a free float and, instead, government intervention in the form of buying and selling determines the final results at the end of the day.With the arrival of the Euro in the world F/X (foreign exchange) market scene, things started changing.
And let us not forget that the Euro has replaced 15 European currencies, and some of them, like the German mark, French franc and Italian lira were backed by strong economic and industrial giants of the world.
With the Euro surging not only in value but also as a dependable currency, the world commodity markets, especially relating to oil, will start contemplating a switch to the Euro to protect themselves against instability or the falling dollar.
The US administration will definitely want to sabotage such a move by hook or crook as its financial survival depends on the role of dollar as a legitimate international currency. Now, a look at what is really going on behind the scene.
US statistic reports have repeatedly shown the American C/A (current account) deficit has expanded continuously with billions in fiscal deficit.With China shifting some of its foreign reserves into Euro, there is already a warning ringing for the United States as more countries shift to Euro; more falls in the dollar will result.
Add to those factors the role played by the locomotive economies of Asia including China and India growing by leaps and bounds in the current years. But the financial mechanism needed to keep the dollar at a price that will sustain the US C/A deficit without putting pressure on its import/export ratio, which in turn enhances or erodes the lifestyle of its citizens, will not garner support internationally over a long-term period and US will have to pay the price at some point.
The days when the greenback ruled with absolute supremacy and simultaneously commanded the unparalleled confidence of chiefs of international and domestic financial institutions along with the man in the street in the remotest parts of the planet are over. The American dollar is no more “The Currency” that can be relied on for value, as was evident by a recent CNN news clip showing an antique store in New York preferring Euro over the local currency.
Since World War II, when the American dollar started replacing gold as a means of transaction on the international level, the dollar has taken some hard knocks in recent years.
With the launch of the Euro nearly a decade ago, much was written in the pro-dollar media and EMU, as the Eurozone is called, and it was compared with the “EMU,” a bird that cannot fly. But then, compared to the launch and subsequent drop as the nascent currency took baby steps, the Euro has come of age and has crossed the threshold One Euro=USD 1.5 plus. And the dollar has also lost against the other leading currencies, like the Japanese Yen and British Pound.
With the way things are going, one must understand why and when the American dollar got to that place on the pedestal. Only then does it become clear what is happening now. As mentioned earlier, a walk down memory lane shows that till World War II the exchange rates of major currencies were reflected in terms of the price of gold in the respective countries, but with the manipulation of costs of other goods then, gold was a growing discomfort among trading partners across the globe, and the dollar came as a suitable solution.
World War II ended with the emergence of the United States as the dominant military and economic powerhouse, and as countries gathered to this epiccentre for military and financial support, the dollar emerged as the financial powerpoint of the financial world.
With the issuing of US government securities there was an added charm of earning interest over dollar deposits.But to the discerning eye, there was a Catch-22 situation that stayed afloat all these decades - and still is. The use and abuse of the technical term “Balance of Payments” was so rampant by the US that one shudders to look at the figures over the years. The United States consumed more than it produced, financing the payments with printed paper and all had been well till 1971 arrived.
The US devalued the “International Currency” unilaterally. Internationally-held dollar reserves overnight lost value and that was quite a hard knock for some of the poor countries of the world.Five years later, in 1976, came the Jamaican Agreement that gave the financial world a floating exchange rate system where the markets started playing a lead role.
But again, it was not a free float and, instead, government intervention in the form of buying and selling determines the final results at the end of the day.With the arrival of the Euro in the world F/X (foreign exchange) market scene, things started changing.
And let us not forget that the Euro has replaced 15 European currencies, and some of them, like the German mark, French franc and Italian lira were backed by strong economic and industrial giants of the world.
With the Euro surging not only in value but also as a dependable currency, the world commodity markets, especially relating to oil, will start contemplating a switch to the Euro to protect themselves against instability or the falling dollar.
The US administration will definitely want to sabotage such a move by hook or crook as its financial survival depends on the role of dollar as a legitimate international currency. Now, a look at what is really going on behind the scene.
US statistic reports have repeatedly shown the American C/A (current account) deficit has expanded continuously with billions in fiscal deficit.With China shifting some of its foreign reserves into Euro, there is already a warning ringing for the United States as more countries shift to Euro; more falls in the dollar will result.
Add to those factors the role played by the locomotive economies of Asia including China and India growing by leaps and bounds in the current years. But the financial mechanism needed to keep the dollar at a price that will sustain the US C/A deficit without putting pressure on its import/export ratio, which in turn enhances or erodes the lifestyle of its citizens, will not garner support internationally over a long-term period and US will have to pay the price at some point.
Saturday, February 23, 2008
European Parliament faces fraud enquiry
MEP Davies confirms "OLAF has the report"
European Anti-Fraud Office (OLAF) moved in swiftly on February 22, 2008 to secure a copy of "The Document," from the European parliament within 24 hours of requesting a copy, about which one member of the European Parliament (MEP) quipped, "This report is dynamite." The report prepared by European parliament's internal auditors focuses on how MEPs spent or allegedly misspent the taxpayers’ money.
So perilous is the extent of the fraud, it is claimed by a parliamentary source that the report can only be seen by members of the Budget Control Committee in a secret room, under surveillance and without taking notes or making copies.
Realising the gravity and extent of the possible misuse of public funds, Chris Davies, the young British MEP took the first step to bring it to light calling upon Franz Bruener, OLAF's Director General in a letter (see below), "As a member of the European Parliament's Budget Control Committee I was this morning permitted to read a copy of Internal Audit Report 06/02 on the parliamentary assistance allowance paid to MEPs for the employment of their staff. Currently I believe this amounts annually to more than 140 million Euro and represents some 10 percent of the Parliament's total expenditure."
MEP Davies told this journalist, "I believe the auditor's report was intended to be published and I think it a disgrace that it is being kept secret by the parliamentary authorities. The Parliament preaches the virtues of transparency and openness and it should start to practice them. The next step is that a copy should be given to every MEP and made public. Let the taxpayers judge what it says for themselves."
Asked to comment on reactions from fellow MEPs, Davies noted, "Support yes from some MEPs (Dutch for example, who have to work within a strong code of conduct agreed by the parties in that country)." He admitted to "some pressure from other British MEPs to shut up. Never on the basis that they are doing something wrong, but always from those who are passionate pro-Europeans, know how difficult it is to argue the pro-EU case in Britain, and believe that these revelations undermine the reputation of the Parliament. They also argue that attempts are being made to achieve reform."
MEP Davies said, "Too often it is a case of blame the messenger instead of blaming the cheats."
According to a parliamentary source, the report was kept in a secret room in an undisclosed location protected by biometric locks and security guards. Those few who enter can only do so after signing confidentiality agreements, and are prohibited from discussing what they discover inside.
The reliable source said on a condition of anonymity, "The secret room houses a confidential dossier on the ‘extensive, widespread and criminal abuse’ by Euro-MPs of staff allowances. So explosive are the figures that officials are terrified by the damage it could do should its contents be revealed to the public."
According to sources who have seen the report, the secret enquiry documents abuses of staff allowances by a sample group of 167 Euro MPs. Although the report does not name and shame any individual MEP, the detailed account of how in an unaccountable way the tax-payers' hard earned money is squandered with no taps or checks is appalling.
B
According to another reliable source, "It is widely rumoured that Italian MEPs have in many cases set up shadow companies/organisations to manage their staff budget. These organisations comply with the Parliament's rules but actually allow the money to be channelled towards individuals or political parties."
Asked to comment on it, MEP Davies said, "But what can you do? I am told that there is no mention whatsoever of this scandal in the Italian or Greek press, so how do you generate any pressure for change?"
Explaining the way the alleged fraud may have worked, MEP Davies added, "The Parliament provides a second pension scheme that the majority of MEPs have joined voluntarily. Parliament pays two thirds (GBP 18,000 pa or 24,000 Euro approximately) and the MEP is supposed to pay one third (GBP 9000 pa or 12,000 Euro). But the MEPs' contribution is deducted from their office costs allowance ‘for administrative convenience.’"
The catch lies in the fact that MEPs are supposed to pay it back personally but then the question arises how many do and how many just are too lazy to make that transfer. Commenting on this MEP Davies said, "I regard this equivalent to embezzlement and it is another disgrace that the Parliament has refused to change the arrangements that permit it."
Moreover, the fact to be noted is that the office allowance is worth more than GBP 30,000 pa (40,000 Euro) and "NO RECEIPTS WHATSOEVER" have to be provided to justify expenditure according to MEP Davies.
In the light of all this there was a panic among the lawmakers at what damage the report can inflict in the run-up to the European parliamentary elections in 2009.
"I love the Parliament. I am proud of the work that I and my colleagues do as MEPs. But I am angry that we allow procedures to exist that bring us all into contempt," MEP Davies concluded.
The report, its findings and its recommendations, are due to be discussed at the next Tuesday (February 26) meeting of the Budget Control Committee under the item 2006 discharge: EC general budget.
------------------------
COPY OF LETTER TO THE EU ANTI-FRAUD OFFICE
Mr Franz Bruener
Director-General
OLAF
Dear Mr Bruener
As a member of the European Parliament's Budget Control Committee I was this morning permitted to read a copy of Internal Audit Report 06/02 on the parliamentary assistance allowance paid to MEPs for the employment of their staff. Currently I believe this amounts annually to more than €140 million and represents some 10% of the Parliament's total expenditure.
Disgracefully in my view the document has been declared confidential under the Parliament's rules, pursuant to Article 4 of Regulation (EC) No 1049/2001, that gives such authority to the President of Parliament, the chairmen of the parliamentary committees concerned and the Secretary-General and/or any person they have duly authorised by written delegation. I was therefore allowed to read the document only under supervision and was not allowed to make notes. Members authorised to read it are required to sign a confidentiality statement that prohibits the dissemination of the information.
The report, its findings and its recommendations, are due to be discussed at the meeting of the Budget Control Committee on 26 February under the item 2006 discharge: EC general budget.
OLAF was established to uphold the principle that the European Institutions have a duty to guarantee, with regard to the taxpayer, the best use of their money and in particular to fight as effectively as possible against fraud and any other illegal activity harmful to the financial interests of the Community.
In my view the findings of the Parliament's internal auditors fall within OLAF's terms of reference.
If a copy of report 06/02 has not yet been provided to you I believe you should insist that the parliamentary authorities provide you with one, and thereafter that the auditors should give you such further information as may be needed to commence investigations against individuals.
There is a great reluctance amongst some MEPs to ensure that the financial procedures of the European Parliament in relation to its members are put on the same sound basis that we would expect of other public institutions. Maybe when some MEPs are named, exposed for defrauding the Parliament and the public, and are sent to prison, a more acceptable approach will be adopted.
I would be pleased to discuss this matter with yourself or Ms Heinkelmann.
Yours faithfully
Chris Davies MEP
European Parliament
European Anti-Fraud Office (OLAF) moved in swiftly on February 22, 2008 to secure a copy of "The Document," from the European parliament within 24 hours of requesting a copy, about which one member of the European Parliament (MEP) quipped, "This report is dynamite." The report prepared by European parliament's internal auditors focuses on how MEPs spent or allegedly misspent the taxpayers’ money.
So perilous is the extent of the fraud, it is claimed by a parliamentary source that the report can only be seen by members of the Budget Control Committee in a secret room, under surveillance and without taking notes or making copies.
Realising the gravity and extent of the possible misuse of public funds, Chris Davies, the young British MEP took the first step to bring it to light calling upon Franz Bruener, OLAF's Director General in a letter (see below), "As a member of the European Parliament's Budget Control Committee I was this morning permitted to read a copy of Internal Audit Report 06/02 on the parliamentary assistance allowance paid to MEPs for the employment of their staff. Currently I believe this amounts annually to more than 140 million Euro and represents some 10 percent of the Parliament's total expenditure."
MEP Davies told this journalist, "I believe the auditor's report was intended to be published and I think it a disgrace that it is being kept secret by the parliamentary authorities. The Parliament preaches the virtues of transparency and openness and it should start to practice them. The next step is that a copy should be given to every MEP and made public. Let the taxpayers judge what it says for themselves."
Asked to comment on reactions from fellow MEPs, Davies noted, "Support yes from some MEPs (Dutch for example, who have to work within a strong code of conduct agreed by the parties in that country)." He admitted to "some pressure from other British MEPs to shut up. Never on the basis that they are doing something wrong, but always from those who are passionate pro-Europeans, know how difficult it is to argue the pro-EU case in Britain, and believe that these revelations undermine the reputation of the Parliament. They also argue that attempts are being made to achieve reform."
MEP Davies said, "Too often it is a case of blame the messenger instead of blaming the cheats."
According to a parliamentary source, the report was kept in a secret room in an undisclosed location protected by biometric locks and security guards. Those few who enter can only do so after signing confidentiality agreements, and are prohibited from discussing what they discover inside.
The reliable source said on a condition of anonymity, "The secret room houses a confidential dossier on the ‘extensive, widespread and criminal abuse’ by Euro-MPs of staff allowances. So explosive are the figures that officials are terrified by the damage it could do should its contents be revealed to the public."
According to sources who have seen the report, the secret enquiry documents abuses of staff allowances by a sample group of 167 Euro MPs. Although the report does not name and shame any individual MEP, the detailed account of how in an unaccountable way the tax-payers' hard earned money is squandered with no taps or checks is appalling.
B
According to another reliable source, "It is widely rumoured that Italian MEPs have in many cases set up shadow companies/organisations to manage their staff budget. These organisations comply with the Parliament's rules but actually allow the money to be channelled towards individuals or political parties."
Asked to comment on it, MEP Davies said, "But what can you do? I am told that there is no mention whatsoever of this scandal in the Italian or Greek press, so how do you generate any pressure for change?"
Explaining the way the alleged fraud may have worked, MEP Davies added, "The Parliament provides a second pension scheme that the majority of MEPs have joined voluntarily. Parliament pays two thirds (GBP 18,000 pa or 24,000 Euro approximately) and the MEP is supposed to pay one third (GBP 9000 pa or 12,000 Euro). But the MEPs' contribution is deducted from their office costs allowance ‘for administrative convenience.’"
The catch lies in the fact that MEPs are supposed to pay it back personally but then the question arises how many do and how many just are too lazy to make that transfer. Commenting on this MEP Davies said, "I regard this equivalent to embezzlement and it is another disgrace that the Parliament has refused to change the arrangements that permit it."
Moreover, the fact to be noted is that the office allowance is worth more than GBP 30,000 pa (40,000 Euro) and "NO RECEIPTS WHATSOEVER" have to be provided to justify expenditure according to MEP Davies.
In the light of all this there was a panic among the lawmakers at what damage the report can inflict in the run-up to the European parliamentary elections in 2009.
"I love the Parliament. I am proud of the work that I and my colleagues do as MEPs. But I am angry that we allow procedures to exist that bring us all into contempt," MEP Davies concluded.
The report, its findings and its recommendations, are due to be discussed at the next Tuesday (February 26) meeting of the Budget Control Committee under the item 2006 discharge: EC general budget.
------------------------
COPY OF LETTER TO THE EU ANTI-FRAUD OFFICE
Mr Franz Bruener
Director-General
OLAF
Dear Mr Bruener
As a member of the European Parliament's Budget Control Committee I was this morning permitted to read a copy of Internal Audit Report 06/02 on the parliamentary assistance allowance paid to MEPs for the employment of their staff. Currently I believe this amounts annually to more than €140 million and represents some 10% of the Parliament's total expenditure.
Disgracefully in my view the document has been declared confidential under the Parliament's rules, pursuant to Article 4 of Regulation (EC) No 1049/2001, that gives such authority to the President of Parliament, the chairmen of the parliamentary committees concerned and the Secretary-General and/or any person they have duly authorised by written delegation. I was therefore allowed to read the document only under supervision and was not allowed to make notes. Members authorised to read it are required to sign a confidentiality statement that prohibits the dissemination of the information.
The report, its findings and its recommendations, are due to be discussed at the meeting of the Budget Control Committee on 26 February under the item 2006 discharge: EC general budget.
OLAF was established to uphold the principle that the European Institutions have a duty to guarantee, with regard to the taxpayer, the best use of their money and in particular to fight as effectively as possible against fraud and any other illegal activity harmful to the financial interests of the Community.
In my view the findings of the Parliament's internal auditors fall within OLAF's terms of reference.
If a copy of report 06/02 has not yet been provided to you I believe you should insist that the parliamentary authorities provide you with one, and thereafter that the auditors should give you such further information as may be needed to commence investigations against individuals.
There is a great reluctance amongst some MEPs to ensure that the financial procedures of the European Parliament in relation to its members are put on the same sound basis that we would expect of other public institutions. Maybe when some MEPs are named, exposed for defrauding the Parliament and the public, and are sent to prison, a more acceptable approach will be adopted.
I would be pleased to discuss this matter with yourself or Ms Heinkelmann.
Yours faithfully
Chris Davies MEP
European Parliament
Sunday, November 25, 2007
Euro rally worries EU
ECB to take action; Merkel, Barroso express concern
Money is talk of the town and money, “The social lubricant” with a near free-fall of the US dollar, is sending ripples across the globe affecting all quarters of life. The steady fall of the American dollar against other global currencies and the meteoric rise of the nascent European currency, the Euro, is making financial pundits act and react.
Acknowledging the reemergence of tension in money markets, the European Central Bank (ECB) announced, “To counter the re-emerging risk of volatility, the ECB intends to reinforce in the upcoming main refinancing operation, as well as in the following ones for as long as it is needed and at least until after the end of the year, its policy of allocating more liquidity than the benchmark amount in main refinancing operations.” The benchmark amount is an estimate of the liquidity needed by banks to fulfil their minimum reserve requirements.
“In line with its communication of October 8th, the ECB will continue to closely monitor liquidity conditions, consistently with its aim to limit the volatility of very short term rates around the main refinancing operations minimum bid rate,” the bank in a move aimed at financial markets said.
Reiterating faith in the earlier ECB actions as “effective and flexible,” ECB president Jean- Claude Trichet said, “Looking ahead, and in line with its previous communications and actions, the ECB will continue to steer very short term interbank rates close (to) the minimum bid rate.”
Commenting on the strength of the Euro becoming a problem for some European exporters, German Chancellor Angela Merkel told N24 television on November 22 that the strong Euro and high oil prices pose a risk to the country’s economy — Europe’s largest. “We are pleased that Europe has a strong currency, but this obviously also creates problems for exports,” she said adding, “We are working on an international level to balance currency imbalances reasonably.”
European Commission President Jose Manuel Barroso echoed her sentiments last week. Speaking on the side lines of an EU-ASEAN Summit in Singapore, Barroso said, “It’s true that the very strong Euro is becoming a concern to some export sectors in some parts of the European economy.”
The European Commission this month cut its forecast for 2008 Eurozone economic growth to 2.2 percent from 2.5 percent.
In related fallout in the industry, Airbus CEO Thomas Enders said the Euro has now “crossed the pain threshold” and that the rate of the dollar’s fall “hardly leaves room for reasonable adapting.” “That is lifethreatening,” he was quoted by Der Spiegel magazine as telling the company worker’s council in Hamburg on November 22.
Although the company is expecting a record number of orders, it still must reckon with “tremendous losses,” he said. But the German economics ministry reacted the next day saying it is up to the aircraft maker Airbus and not the government to estimate the impact of the strong Euro on the company’s performance. “Only the company itself can assess how threatening such a development is for the company,” said an economics ministry spokeswoman. “Only the company can say to which degree the Euro has contributed to its development.”
Moreover, there is a flip side of the strong Euro as was pointed out by Merkel’s deputy economics minister. The rising Euro is damping the effect of rising oil prices, noted Bernd Pfaffenbach, who is also Merkel’s advisor on the Group of Eight industrial nations’ issues.
Recalling the worries during the birth of the European currency that Euro will even stay weaker than the Deutsche Mark, Pfaffenback welcome the news that China has announced plans to shift its currency reserves into Euro adding, “This shows a growth in faith in the European currency.”
Although burdened with strikes and transport chaos at home and silent directly on the rising Euro, French President Nicolas Sarkozy was about to address the currency issue during talks with Chinese leaders in Beijing.
According to media reports, a senior French official was cited as saying that Sarkozy will make proposals for an “equitable and fair” relationship among four major currencies - the US dollar, Euro, Japanese Yen and Chinese Yuan.
The common currency for the 13-nation Eurozone is hovering close to the USD 1.50 mark against the American dollar, breaking all records.
Money is talk of the town and money, “The social lubricant” with a near free-fall of the US dollar, is sending ripples across the globe affecting all quarters of life. The steady fall of the American dollar against other global currencies and the meteoric rise of the nascent European currency, the Euro, is making financial pundits act and react.
Acknowledging the reemergence of tension in money markets, the European Central Bank (ECB) announced, “To counter the re-emerging risk of volatility, the ECB intends to reinforce in the upcoming main refinancing operation, as well as in the following ones for as long as it is needed and at least until after the end of the year, its policy of allocating more liquidity than the benchmark amount in main refinancing operations.” The benchmark amount is an estimate of the liquidity needed by banks to fulfil their minimum reserve requirements.
“In line with its communication of October 8th, the ECB will continue to closely monitor liquidity conditions, consistently with its aim to limit the volatility of very short term rates around the main refinancing operations minimum bid rate,” the bank in a move aimed at financial markets said.
Reiterating faith in the earlier ECB actions as “effective and flexible,” ECB president Jean- Claude Trichet said, “Looking ahead, and in line with its previous communications and actions, the ECB will continue to steer very short term interbank rates close (to) the minimum bid rate.”
Commenting on the strength of the Euro becoming a problem for some European exporters, German Chancellor Angela Merkel told N24 television on November 22 that the strong Euro and high oil prices pose a risk to the country’s economy — Europe’s largest. “We are pleased that Europe has a strong currency, but this obviously also creates problems for exports,” she said adding, “We are working on an international level to balance currency imbalances reasonably.”
European Commission President Jose Manuel Barroso echoed her sentiments last week. Speaking on the side lines of an EU-ASEAN Summit in Singapore, Barroso said, “It’s true that the very strong Euro is becoming a concern to some export sectors in some parts of the European economy.”
The European Commission this month cut its forecast for 2008 Eurozone economic growth to 2.2 percent from 2.5 percent.
In related fallout in the industry, Airbus CEO Thomas Enders said the Euro has now “crossed the pain threshold” and that the rate of the dollar’s fall “hardly leaves room for reasonable adapting.” “That is lifethreatening,” he was quoted by Der Spiegel magazine as telling the company worker’s council in Hamburg on November 22.
Although the company is expecting a record number of orders, it still must reckon with “tremendous losses,” he said. But the German economics ministry reacted the next day saying it is up to the aircraft maker Airbus and not the government to estimate the impact of the strong Euro on the company’s performance. “Only the company itself can assess how threatening such a development is for the company,” said an economics ministry spokeswoman. “Only the company can say to which degree the Euro has contributed to its development.”
Moreover, there is a flip side of the strong Euro as was pointed out by Merkel’s deputy economics minister. The rising Euro is damping the effect of rising oil prices, noted Bernd Pfaffenbach, who is also Merkel’s advisor on the Group of Eight industrial nations’ issues.
Recalling the worries during the birth of the European currency that Euro will even stay weaker than the Deutsche Mark, Pfaffenback welcome the news that China has announced plans to shift its currency reserves into Euro adding, “This shows a growth in faith in the European currency.”
Although burdened with strikes and transport chaos at home and silent directly on the rising Euro, French President Nicolas Sarkozy was about to address the currency issue during talks with Chinese leaders in Beijing.
According to media reports, a senior French official was cited as saying that Sarkozy will make proposals for an “equitable and fair” relationship among four major currencies - the US dollar, Euro, Japanese Yen and Chinese Yuan.
The common currency for the 13-nation Eurozone is hovering close to the USD 1.50 mark against the American dollar, breaking all records.
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