European Competition Commissioner Neelie Kroes today (Nov 6) announced plans for sale of the Polish yards saying, "Clearly, today's decision is not the one which the shipyard workers would have liked. This is without a doubt one of the hardest proposals to the Commission that I have had to make as Competition Commissioner."
Blaming the Polish authorities for the present state of affairs the competition commissioner said, "The sad reality is that the very large subsidies received were consistently used for day to day operations, to keep the yards going in the short term rather than invested to make the yards viable in the long term," adding, "...even though shipbuilding has been booming worldwide and prices for new ships rising, the yards in Gdynia and Szczecin were still making a loss on every ship they produced."
"In particular, despite further large amounts of state aid and substantial job losses, the plans would not ensure the yards' commercial viability," the Commissioner lamented.
Asked if she will go to Poland to fulfill the promise of delivering the plans to the Polish shipyard workers in person, Commissioner told journalists, "I am planning to go to Poland and visit three shipyards as soon as possible (to present the plans as promised by me)," adding, "It will be in early December but earlier the better."
SALE CONDITIONS
Outlining the sale procedures, the Commissioner said, "The assets have to be sold at market price to the highest bidder. The tenders must be non-discriminatory, ensuring access to all types of potential buyers, irrespective of the purpose of their investment. No conditions can be attached to the tenders (for example, a requirement that a bidder purchases all the assets of a given yard)."
"The sole award criterion for the selection of the winning bid will be revenue maximisation for the benefit of the yard's creditors," said the Commissioner adding that investment companies and real estate developers will also be allowed to bid in these tenders.
ALTERNATE EMPLOYMENT
Trying to sooth the frayed nerves of shipyard workers, Commissioner Kroes told journalists, "The Commission can help workers at these yards to find alternative employment. My colleagues Commissioners Vladimir Spidla and Danuta Huebner have offered assistance in devising flanking measures under existing EU programmes to find solutions for the shipyards' workers and these regions that will help them through the potentially difficult times ahead."
GDANSK: A DIFFERENT STORY
Regarding the Gdansk shipyard, the Commissioner said, "we have not yet taken a decision. Gdansk is in a slightly different situation than the two other yards because it is smaller, it is already privatised and the level of subsidies received is considerably lower than in the case of Gdynia and Szczecin. Moreover, the new owner has already invested considerable sums in the Gdansk yard."
Throwing the ball back into the court of Warsaw, Kroes said, "The Polish authorities now have an opportunity to submit a restructuring plan for Gdansk alone for the Commission to examine."
WARSAW TO GET MONEY BACK
Since 2002, Gdynia Shipyard benefited from various aid measures (in particular capital injections, loans and tax write-offs) amounting to 700 million Euro and from production guarantees of 916 million Euro, the Commission stated, adding, "Szczecin Shipyard received aid of one billion Euro as well as production guarantees of 697 million Euro."
The Commission concluded, "the decisions require that Poland recovers from the yards all state aid unlawfully granted since May 2004."
Adding his voice to the decision, Commission President José Manuel Barroso said in a statement, "We have worked long and hard to find a solution that is fair and sustainable. For the workers and businesses in Poland, but also for people working and doing business elsewhere. The solution that we have agreed with the Polish authorities offers the best possible prospects for future jobs and viable activities at these historic sites."
NO COMPARISON WITH BANK RESCUE
Comparing the decision with the approvals that the Commission has given to rescue aid in the banking sector, the Commissioner said, "we have been authorising rescue aid for banks whose failure could have had catastrophic knock-on effects on Member States' financial sectors, and in turn Member States' economies as a whole, potentially harming seriously every citizen and every business in Europe."
"The rescue aid for banks has been authorised for relatively short periods. If the banks concerned receive aid going beyond pure rescue, they too will have to undergo restructuring to restore their viability, just as the shipyards were supposed to do," Kroes, the competition Commissioner concluded.
Showing posts with label Jose Manuel Barroso. Show all posts
Showing posts with label Jose Manuel Barroso. Show all posts
Saturday, November 8, 2008
EU leaders call for international financial reform
By Tejinder Singh
Brussels, Nov 8 (IANS) European Union leaders have agreed that next week's emergency summit in Washington must lead to a reformed international financial system, declaring: "We cannot fail'.
Meeting ahead of the Nov 15 summit, leaders of the 27-nation EU agreed to "defend the common vision for restructuring the financial system", French President Nicolas Sarkozy, current holder of the rotating EU Presidency, told journalists.
Leaders of 20 of the world's richest nations and biggest emerging economies, including India, are set to attend the summit in Washington DC to discuss how to prevent a financial crisis happening again.
Addressing a joint press conference with European Commission President Jose Manuel Barroso Friday, Sarkozy said: 'We should be able to come up with answers to the crisis. The international summit must pave the way for reform of the international financial system."
Barroso added: 'We cannot fail. It has to be a historic meeting."
"Apart from financial issues, global challenges also should be integrated,' he said, listing them as food shortages, the fight against poverty, climate change, and the relaunch of Doha Round of world trade negotiations.
'We have to look beyond the financial crisis, to the economic crisis. We need specific measures to cope with the slowdown and maintain growth and employment,' Barroso said.
The EU leaders agreed to four guiding principles:
- No financial institution, market segment and/or jurisdiction must escape proportionate and adequate regulation or at least supervision;
- The new international financial system must be based on principles of accountability and transparency;
- The new international financial system must allow risks to be assessed so as to prevent crises;
- The International Monetary Fund (IMF) must be given a central role in a more efficient financial architecture.
Sarkozy said he had discussed the summit with US President-elect Barack Obama Thursday, when he apprised him of European leaders' view that since the transition in the US government will take time there needs to be a strong follow-up.
EU leaders say a period of 100 days starting Nov 15 'should be used for drawing up measures to implement the principles' before holding a follow-up summit.
Brussels, Nov 8 (IANS) European Union leaders have agreed that next week's emergency summit in Washington must lead to a reformed international financial system, declaring: "We cannot fail'.
Meeting ahead of the Nov 15 summit, leaders of the 27-nation EU agreed to "defend the common vision for restructuring the financial system", French President Nicolas Sarkozy, current holder of the rotating EU Presidency, told journalists.
Leaders of 20 of the world's richest nations and biggest emerging economies, including India, are set to attend the summit in Washington DC to discuss how to prevent a financial crisis happening again.
Addressing a joint press conference with European Commission President Jose Manuel Barroso Friday, Sarkozy said: 'We should be able to come up with answers to the crisis. The international summit must pave the way for reform of the international financial system."
Barroso added: 'We cannot fail. It has to be a historic meeting."
"Apart from financial issues, global challenges also should be integrated,' he said, listing them as food shortages, the fight against poverty, climate change, and the relaunch of Doha Round of world trade negotiations.
'We have to look beyond the financial crisis, to the economic crisis. We need specific measures to cope with the slowdown and maintain growth and employment,' Barroso said.
The EU leaders agreed to four guiding principles:
- No financial institution, market segment and/or jurisdiction must escape proportionate and adequate regulation or at least supervision;
- The new international financial system must be based on principles of accountability and transparency;
- The new international financial system must allow risks to be assessed so as to prevent crises;
- The International Monetary Fund (IMF) must be given a central role in a more efficient financial architecture.
Sarkozy said he had discussed the summit with US President-elect Barack Obama Thursday, when he apprised him of European leaders' view that since the transition in the US government will take time there needs to be a strong follow-up.
EU leaders say a period of 100 days starting Nov 15 'should be used for drawing up measures to implement the principles' before holding a follow-up summit.
Thursday, October 30, 2008
EU sets out ambitious plans to tackle financial crisis
The European Commission announced on Wednesday (October 29) it will outline late November an economic recovery plan for the European Union to guide it from the present “financial crisis” to the “sustainable development” to avoid the prospect of recession.
“We will bring forward on November 26, a comprehensive EU recovery plan, based on the framework we have approved today,” Commission President Jose Manuel Barroso told journalists, adding, “that recovery plan will include targeted short-term actions to add to the medium-term reform agenda.”
Outlining a four-pronged framework as the basis of the plan, Barroso highlighted pragmatic measures to help families and households across Europe, coordination and solidarity among member states, full use of flexibility allowed by EU rules and global governance.
SOCIAL RESPONSIBILITY
"Our top priority is to minimise the impact on jobs, purchasing power and prosperity of our citizens," he said. “We must keep unemployment to the absolute minimum and support those who have lost their jobs," Barroso added.
In a commission communication relating to the financial crisis, released after the press conference, the Commission stressed the need for social solidarity, saying that households and employees need to be cushioned from the full effects of the economic downturn.
The communication stated the chances for reviewing the terms for releasing money from the European Social Fund, which aims to provide educational opportunities and improve job skills, and review the effectiveness of the Global Adjustment Fund, which was established in 2007 to help workers laid off by companies that have moved their operations outside Europe.
Addressing a joint press conference with Barroso, European Economic and Monetary Affairs Commissioner Joaquin Almunia said, “We are now facing not only a financial crisis but a serious slowdown in our economies that is hitting households, businesses and jobs.”
FLEXIBILITY IN APPLICATION OF RULES
Calling on member states to use flexibility provided in European fiscal rules in the case of sharp slowdowns, Almunia said, “They should use the room for manoeuvre they have to cushion the impact," adding, “we have red lines, we cannot put an excessive burden on the next generation.”
Almunia said: "Given that inflationary pressures are now easing, monetary and fiscal policy can contribute to supporting demand ... member states can now use the room for maneuver they have created.”
Almunia insisted that the Stability and Growth Pact is the appropriate policy framework for the EU, adding that in case of extra-ordinary condition like present, the pact will be interpreted flexibly, allowing budget deficits to exceed three percent of gross domestic production provided the deviation is small and temporary.
“The pact is about peer support in a difficult situation as the one we are living in and not only about peer pressure,” he said.
Echoing Almunia, Barroso said EU countries should use to its full potential the flexibility that exists within the EU fiscal discipline, as well as within the competition, state aids and internal market rules.
Warning, “We need to swim together or else we will sink together,” Barroso also acknowledged that the member states held the "main instruments" for reviving growth and not the European Union adding, “Europe must confront the economic downturn with the same robust and coordinated approach we have taken on the financial crisis.”
Commission President Barroso, however, cautioned against using the financial crisis to bring in protectionism saying, “Trade barriers shut out prosperity and open the gates instead to short-term, economic populism. So yes to pro-activism, but no to protectionism.”
ENHANCING ROLE OF EIB, EBRD
Barroso and Almunia also urged the member states to look at the possibility of strengthening supranational financial institutions. Barroso said governments should also consider giving more money to the European Investment Bank that could direct funding to infrastructure projects or provide loans for small businesses hit by the credit crunch.
The European Bank for Reconstruction and Development (EBRD) could also receive more capital. The commission communication stated, “The EBRD has been playing a key role in financial sector reform and in financing the private sector in our newer member states. In the current financing environment its activities in these countries could be strengthened.
FINANCIAL SOLIDARITY
In the spirit of solidarity, EU governments agreed late Tuesday (October 28) to lend Hungary 6.5 billion Euro in a joint bid with the International Monetary Fund (IMF) to help the country deal with the financial crisis.
Barroso said the EU stands ready to provide substantial medium-term financial assistance to other member states experiencing balance of payments pressures or serious financial stability risks saying, “we need to be prudent but also vigilant.”
Amid fears that several new EU member states and other countries might eventually need assistance, Commissioner Almunia confirmed that no other country has asked for a rescue package similar to one provided to Hungary.
Hinting at the crisis-situation in Ukraine and others, Commission President Barroso said, “neighbours are under stress but EU institutions are ready to provide.”
INTERNATIONAL COOPERATION
Barroso promised EU support to improve cooperation and coherence at international level saying, “When you have global interdependence, you need global governance.”
Commenting on the Summit of Group of 20 in Washington on November 15 to reform the global financial system, Barroso said the summit must deliver the first results so as to rebuild a climate of confidence, which is part of the solution to the current crisis.
Urging China to be part of the solution, Barroso said, “China has been benefiting from this globalisation and has made big financial reserves and its time to show that they can help in this time of crisis.”
Barroso called on the IMF to be prepared to intervene with emergency financing as there were signs that the crisis is spreading to emerging markets. China and the Gulf countries could do more to help the IMF support countries hit by the financial crisis, Barroso said adding, “The idea put forward by (British) Prime Minister Gordon Brown, and I completely agree with him, is that China and others could help more the IMF ... Not only China but also the Gulf countries could maybe give a concrete demonstration of their sense of responsibility.”
On the subject of overhaul of the relevant financial institutions, the commission communication stated, “Europe is well placed to play an active role in designing the new global architecture and making it work effectively,” based on key principles of efficiency, transparency plus accountability and representation.
LACK OF CONFIDENCE
Commenting on the plunging stock markets even with the pumping of liquidity in the banking system, Barroso blamed it on lack of confidence in the economy, Barroso said, “People are expecting the negative effects on the so-called real economy and that's why it's important ... that we are acting in a coordinated way to address the problems of the real economy.” Barroso sounded positive as he declared, “Europe will come through this financial storm and will emerge stronger.”
Almunia said that he had made a proposal to raise the maximum EU aid to member states facing financing troubles to 25 billion Euro as according to a 2002 rule, the EU can provide up to 12 billion Euro in total financial assistance to member states that do not use the Euro when they run into a balance of payments crisis.
"We sent to the council (of member states) proposals for increasing this ceiling to 25 billion Euro," Almunia told journalists. EU officials later said that it will be on the agenda of the meeting of the EU finance ministers on Tuesday (November 4) in Brussels.
“We will bring forward on November 26, a comprehensive EU recovery plan, based on the framework we have approved today,” Commission President Jose Manuel Barroso told journalists, adding, “that recovery plan will include targeted short-term actions to add to the medium-term reform agenda.”
Outlining a four-pronged framework as the basis of the plan, Barroso highlighted pragmatic measures to help families and households across Europe, coordination and solidarity among member states, full use of flexibility allowed by EU rules and global governance.
SOCIAL RESPONSIBILITY
"Our top priority is to minimise the impact on jobs, purchasing power and prosperity of our citizens," he said. “We must keep unemployment to the absolute minimum and support those who have lost their jobs," Barroso added.
In a commission communication relating to the financial crisis, released after the press conference, the Commission stressed the need for social solidarity, saying that households and employees need to be cushioned from the full effects of the economic downturn.
The communication stated the chances for reviewing the terms for releasing money from the European Social Fund, which aims to provide educational opportunities and improve job skills, and review the effectiveness of the Global Adjustment Fund, which was established in 2007 to help workers laid off by companies that have moved their operations outside Europe.
Addressing a joint press conference with Barroso, European Economic and Monetary Affairs Commissioner Joaquin Almunia said, “We are now facing not only a financial crisis but a serious slowdown in our economies that is hitting households, businesses and jobs.”
FLEXIBILITY IN APPLICATION OF RULES
Calling on member states to use flexibility provided in European fiscal rules in the case of sharp slowdowns, Almunia said, “They should use the room for manoeuvre they have to cushion the impact," adding, “we have red lines, we cannot put an excessive burden on the next generation.”
Almunia said: "Given that inflationary pressures are now easing, monetary and fiscal policy can contribute to supporting demand ... member states can now use the room for maneuver they have created.”
Almunia insisted that the Stability and Growth Pact is the appropriate policy framework for the EU, adding that in case of extra-ordinary condition like present, the pact will be interpreted flexibly, allowing budget deficits to exceed three percent of gross domestic production provided the deviation is small and temporary.
“The pact is about peer support in a difficult situation as the one we are living in and not only about peer pressure,” he said.
Echoing Almunia, Barroso said EU countries should use to its full potential the flexibility that exists within the EU fiscal discipline, as well as within the competition, state aids and internal market rules.
Warning, “We need to swim together or else we will sink together,” Barroso also acknowledged that the member states held the "main instruments" for reviving growth and not the European Union adding, “Europe must confront the economic downturn with the same robust and coordinated approach we have taken on the financial crisis.”
Commission President Barroso, however, cautioned against using the financial crisis to bring in protectionism saying, “Trade barriers shut out prosperity and open the gates instead to short-term, economic populism. So yes to pro-activism, but no to protectionism.”
ENHANCING ROLE OF EIB, EBRD
Barroso and Almunia also urged the member states to look at the possibility of strengthening supranational financial institutions. Barroso said governments should also consider giving more money to the European Investment Bank that could direct funding to infrastructure projects or provide loans for small businesses hit by the credit crunch.
The European Bank for Reconstruction and Development (EBRD) could also receive more capital. The commission communication stated, “The EBRD has been playing a key role in financial sector reform and in financing the private sector in our newer member states. In the current financing environment its activities in these countries could be strengthened.
FINANCIAL SOLIDARITY
In the spirit of solidarity, EU governments agreed late Tuesday (October 28) to lend Hungary 6.5 billion Euro in a joint bid with the International Monetary Fund (IMF) to help the country deal with the financial crisis.
Barroso said the EU stands ready to provide substantial medium-term financial assistance to other member states experiencing balance of payments pressures or serious financial stability risks saying, “we need to be prudent but also vigilant.”
Amid fears that several new EU member states and other countries might eventually need assistance, Commissioner Almunia confirmed that no other country has asked for a rescue package similar to one provided to Hungary.
Hinting at the crisis-situation in Ukraine and others, Commission President Barroso said, “neighbours are under stress but EU institutions are ready to provide.”
INTERNATIONAL COOPERATION
Barroso promised EU support to improve cooperation and coherence at international level saying, “When you have global interdependence, you need global governance.”
Commenting on the Summit of Group of 20 in Washington on November 15 to reform the global financial system, Barroso said the summit must deliver the first results so as to rebuild a climate of confidence, which is part of the solution to the current crisis.
Urging China to be part of the solution, Barroso said, “China has been benefiting from this globalisation and has made big financial reserves and its time to show that they can help in this time of crisis.”
Barroso called on the IMF to be prepared to intervene with emergency financing as there were signs that the crisis is spreading to emerging markets. China and the Gulf countries could do more to help the IMF support countries hit by the financial crisis, Barroso said adding, “The idea put forward by (British) Prime Minister Gordon Brown, and I completely agree with him, is that China and others could help more the IMF ... Not only China but also the Gulf countries could maybe give a concrete demonstration of their sense of responsibility.”
On the subject of overhaul of the relevant financial institutions, the commission communication stated, “Europe is well placed to play an active role in designing the new global architecture and making it work effectively,” based on key principles of efficiency, transparency plus accountability and representation.
LACK OF CONFIDENCE
Commenting on the plunging stock markets even with the pumping of liquidity in the banking system, Barroso blamed it on lack of confidence in the economy, Barroso said, “People are expecting the negative effects on the so-called real economy and that's why it's important ... that we are acting in a coordinated way to address the problems of the real economy.” Barroso sounded positive as he declared, “Europe will come through this financial storm and will emerge stronger.”
Almunia said that he had made a proposal to raise the maximum EU aid to member states facing financing troubles to 25 billion Euro as according to a 2002 rule, the EU can provide up to 12 billion Euro in total financial assistance to member states that do not use the Euro when they run into a balance of payments crisis.
"We sent to the council (of member states) proposals for increasing this ceiling to 25 billion Euro," Almunia told journalists. EU officials later said that it will be on the agenda of the meeting of the EU finance ministers on Tuesday (November 4) in Brussels.
Wednesday, October 29, 2008
European leaders to meet ahead of financial summit
European leaders are set to gather in Brussels Nov 7 to try and agree to a consensus ahead of a global financial summit to address reforms to international financial institutions.
France, which holds the rotating European Union presidency this year, said in a brief statement Friday that the informal meeting of EU heads of state and government will prepare the EU's 27 member-states for an upcoming financial summit Nov 15 in Washington on the global financial crisis.
The summit was announced by the White House after a meeting last weekend between US President George W. Bush, French President Nicolas Sarkozy and European Commission President Jose Manuel Barroso.
The White House said President Bush would host leaders of 20 of the world's richest nations and biggest emerging economies, including India and China.
At an emergency EU Summit Oct 15-16 here, EU leaders had agreed that a massive overhaul of the world's financial system is needed to prevent another financial crisis and asked Sarkozy and Barroso to hold further discussions with the US administration.
The European Commission, the executive arm of the EU, however, failed to answer questions from journalists over what preparations were in place for the Nov 7 summit.
Commission spokesperson Pia Ahrenkilde Hansen said European Commission members are to meet Oct 29 to prepare for the upcoming global summit in the US.
The US-hosted talks are expected to draw leaders from the Group of 20: Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, South Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, Britain, the US, and the European Union.
France, which holds the rotating European Union presidency this year, said in a brief statement Friday that the informal meeting of EU heads of state and government will prepare the EU's 27 member-states for an upcoming financial summit Nov 15 in Washington on the global financial crisis.
The summit was announced by the White House after a meeting last weekend between US President George W. Bush, French President Nicolas Sarkozy and European Commission President Jose Manuel Barroso.
The White House said President Bush would host leaders of 20 of the world's richest nations and biggest emerging economies, including India and China.
At an emergency EU Summit Oct 15-16 here, EU leaders had agreed that a massive overhaul of the world's financial system is needed to prevent another financial crisis and asked Sarkozy and Barroso to hold further discussions with the US administration.
The European Commission, the executive arm of the EU, however, failed to answer questions from journalists over what preparations were in place for the Nov 7 summit.
Commission spokesperson Pia Ahrenkilde Hansen said European Commission members are to meet Oct 29 to prepare for the upcoming global summit in the US.
The US-hosted talks are expected to draw leaders from the Group of 20: Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, South Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, Britain, the US, and the European Union.
Tuesday, October 28, 2008
EU’s Blue Card visa scheme gets green light
The European Union Council of Ministers of Justice and Home Affairs slated to meet on November 27-28 in Bru ssels is expected to rubber stamp the Blue Card, a fast-track work visa, a decision made at the ambassadors’ level. “As the decision was agreed at the ambassadors’ level, it’s not yet official but we do not foresee any further debates and the decision will be ratified by the EU ministers next month,” an EU official said. France holds the rotating EU Presidency for the second half of 2008 till the end of December. In addition, the EU leaders en dorsed an EU immigration package and put on hold the restart of frozen trade and partnership talks with Russia.
With major countries like Germany and United Kingdom pushing for competition to get the best talents, the EU states significantly weakened the Commission’s original plans by insisting that it is up to national governments to decide how many migrants should enter their countries and what qualifications they should have. With a fast track application process along with making it easier for workers to bring families along and get housing the Blue Card, with validity of four years falls way short of original proposal.
Moreover, the Blue Card would only be issued under strict income conditions, with migrants expected to be earning at least one- and-ahalf times the gross national average wage. The Blue Card, a brain child of European Commission President Jose Manuel Barroso, was designed to be on par with Green Card system of the USA, the final version has lost much of its shine according to EU sources in Brussels.
Barroso had told journalists on September 29 in Marseille, France after the EU-India Summit: “We have made a proposal precisely to make it easier for qualified professionals to come to Europe because we want to remain open and in fact we want more people coming to Europe namely some migrants, qualified migrants and sometimes we find it’s difficult for them to come so we made a proposal and that proposal is being negotiated by the Council of member states and I think the final outcome will be a good one.”
Addressing a joint press conference with Indian Prime Minister Manmohan Singh and current EU Presidency holder French President Nicolas Sarkozy, Barroso had said, “I think it will a good outcome, a balanced proposals especially for the Indians to come to Europe and cooperate inside our member states.”
Asked to comment on the diluting of his proposals, Barroso told journalists, “of course sometimes we want more ambitious results but this is the way we work in the EU we have to understand we are 27 countries so at the end it has to be a compromise between all the countries because thats very much linked to their national sovereignty.”
Commenting on the upcoming proposals, Umesh Shenoy, an Indian software consultant working in Brussels, Belgium said, “Blue Card will greatly alleviate the problem of restrictive movement for non- EU employees within the EU countries. Hopefully will bring stability to otherwise chaotic procedure that comes with applying for work permit and residence cards. This will be useful for Multinational institutions which require workforce to be mobile and It is a win-win situation for both employer and employees alike in the longer term.”
With major countries like Germany and United Kingdom pushing for competition to get the best talents, the EU states significantly weakened the Commission’s original plans by insisting that it is up to national governments to decide how many migrants should enter their countries and what qualifications they should have. With a fast track application process along with making it easier for workers to bring families along and get housing the Blue Card, with validity of four years falls way short of original proposal.
Moreover, the Blue Card would only be issued under strict income conditions, with migrants expected to be earning at least one- and-ahalf times the gross national average wage. The Blue Card, a brain child of European Commission President Jose Manuel Barroso, was designed to be on par with Green Card system of the USA, the final version has lost much of its shine according to EU sources in Brussels.
Barroso had told journalists on September 29 in Marseille, France after the EU-India Summit: “We have made a proposal precisely to make it easier for qualified professionals to come to Europe because we want to remain open and in fact we want more people coming to Europe namely some migrants, qualified migrants and sometimes we find it’s difficult for them to come so we made a proposal and that proposal is being negotiated by the Council of member states and I think the final outcome will be a good one.”
Addressing a joint press conference with Indian Prime Minister Manmohan Singh and current EU Presidency holder French President Nicolas Sarkozy, Barroso had said, “I think it will a good outcome, a balanced proposals especially for the Indians to come to Europe and cooperate inside our member states.”
Asked to comment on the diluting of his proposals, Barroso told journalists, “of course sometimes we want more ambitious results but this is the way we work in the EU we have to understand we are 27 countries so at the end it has to be a compromise between all the countries because thats very much linked to their national sovereignty.”
Commenting on the upcoming proposals, Umesh Shenoy, an Indian software consultant working in Brussels, Belgium said, “Blue Card will greatly alleviate the problem of restrictive movement for non- EU employees within the EU countries. Hopefully will bring stability to otherwise chaotic procedure that comes with applying for work permit and residence cards. This will be useful for Multinational institutions which require workforce to be mobile and It is a win-win situation for both employer and employees alike in the longer term.”
Tuesday, October 21, 2008
Indian diplomatic presence in Brussels needs boost
The European Union and India at the recently concluded EU-India Summit (September 29) in Marseille, France failed to finalise the ongoing trade negotiations over Free Trade Agreement (FTA), the two sides remaining at loggerheads on key issues in the Doha talks on liberalising world trade. Political ties can not go far without financial bonds and a look at the trade figures from recent past show that its time to inject much needed momentum into an uninspiring trade relationship.
Reiterating the importance of trade and economic ties, Indian Prime Minister Manmohan Singh told journalists at a joint press conference with French President Nicolas Sarkozy and European Commission President Jose Manuel Barroso: “We have agreed to achieve an annual bilateral trade turnover of 100 billion Euro within the next five years and to work towards the conclusion of the India- EU Broad- Based Trade and Investment Agreement by end-2009.” The 27-nation bloc’s trade with India amounted to just less than 56 billion Euro last year. Earlier, the trade statistics showed a jump from a meagre less than five billion Euro in 1980 to a respectable more than 45 billion Euro in 2006. Although trade with the EU is 20 percent of India’s import-export business, making the EU India’s largest trading partner in 2006, India’s share is only 1.8 percent of total EU trade. In the context of the ongoing negotiations in the EU-India Free Trade Agreement, there are some stumbling blocks that need to be addressed on both sides. According to reliable sources, the major hurdle is in the fields of agriculture which is a protected sector in the EU which earmarks 40 percent of its total budget to this sector where there are subsidies galore.
NO TIME TABLE
In May, Peter Power, spokesperson for EU Trade Commissioner Peter Mandelson had told journalists in Brussels: “I can confirm that we have received the document from India. I can confirm that it is certainly a useful and worthwhile opening bid for negotiations will have to go further and deeper,” lamenting that the time-frame for the talks to conclude is “not solely in our hands.” “We would like to see this particular negotiation making progress as rapidly as possible. I think the opening bid is not bad, but a lot of work remains to be done to have an agreement that would be worthy of support by both sides,” he noted.
“I think at this stage it would be unwise of me to put a timetable, but certainly we should hope to see substantial movement in the next year to 18 months,” added Power. India formally launched negotiations in June 2007 with the EU for a comprehensive FTA aimed at removing barriers across all sectors including investment and services.
The EU has, in recent times, accepted the fact that Indian import tariffs have been substantially reduced but it complains they are still high by international standards. The EU calls it a “complex and non-transparent” system as it points at additional duties, taxes, and charges that are levied on top of the basic customs duties. Pointing to the “non-tariff” barriers, the EU lists quantitative restrictions, mandatory testing, import licensing, certification for a large number of products and a complicated procedural modus operandi as the major speed breakers for a smooth trade relationship.
SLUGGISH INDIAN MISSION
With Indians finding the EU institutions bewildering and complex, India has its own set of complaints, foremost being in recent times the frequent use of anti-dumping duties on its exports including footwear. This is the arena where the diplomatic mission in Brussels is failing Delhi in the Indian government’s renewed efforts to shift into higher gears cooperation in different fields with the European Union. India’s outgoing ambassador to the European Union, Dipak Chatterjee, last month was cited by EuAsiaNews as saying, “I don’t think India has fully woken up to the fact that the EU is more than an economic and trading partner. The EU is trying to build a political identity for itself. I think it will take some time for India to come to understand that.” “But India is realising that the EU is a force to reckon with. There is interest on both sides to develop relations,” he had added.
Reiterating the importance of trade and economic ties, Indian Prime Minister Manmohan Singh told journalists at a joint press conference with French President Nicolas Sarkozy and European Commission President Jose Manuel Barroso: “We have agreed to achieve an annual bilateral trade turnover of 100 billion Euro within the next five years and to work towards the conclusion of the India- EU Broad- Based Trade and Investment Agreement by end-2009.” The 27-nation bloc’s trade with India amounted to just less than 56 billion Euro last year. Earlier, the trade statistics showed a jump from a meagre less than five billion Euro in 1980 to a respectable more than 45 billion Euro in 2006. Although trade with the EU is 20 percent of India’s import-export business, making the EU India’s largest trading partner in 2006, India’s share is only 1.8 percent of total EU trade. In the context of the ongoing negotiations in the EU-India Free Trade Agreement, there are some stumbling blocks that need to be addressed on both sides. According to reliable sources, the major hurdle is in the fields of agriculture which is a protected sector in the EU which earmarks 40 percent of its total budget to this sector where there are subsidies galore.
NO TIME TABLE
In May, Peter Power, spokesperson for EU Trade Commissioner Peter Mandelson had told journalists in Brussels: “I can confirm that we have received the document from India. I can confirm that it is certainly a useful and worthwhile opening bid for negotiations will have to go further and deeper,” lamenting that the time-frame for the talks to conclude is “not solely in our hands.” “We would like to see this particular negotiation making progress as rapidly as possible. I think the opening bid is not bad, but a lot of work remains to be done to have an agreement that would be worthy of support by both sides,” he noted.
“I think at this stage it would be unwise of me to put a timetable, but certainly we should hope to see substantial movement in the next year to 18 months,” added Power. India formally launched negotiations in June 2007 with the EU for a comprehensive FTA aimed at removing barriers across all sectors including investment and services.
The EU has, in recent times, accepted the fact that Indian import tariffs have been substantially reduced but it complains they are still high by international standards. The EU calls it a “complex and non-transparent” system as it points at additional duties, taxes, and charges that are levied on top of the basic customs duties. Pointing to the “non-tariff” barriers, the EU lists quantitative restrictions, mandatory testing, import licensing, certification for a large number of products and a complicated procedural modus operandi as the major speed breakers for a smooth trade relationship.
SLUGGISH INDIAN MISSION
With Indians finding the EU institutions bewildering and complex, India has its own set of complaints, foremost being in recent times the frequent use of anti-dumping duties on its exports including footwear. This is the arena where the diplomatic mission in Brussels is failing Delhi in the Indian government’s renewed efforts to shift into higher gears cooperation in different fields with the European Union. India’s outgoing ambassador to the European Union, Dipak Chatterjee, last month was cited by EuAsiaNews as saying, “I don’t think India has fully woken up to the fact that the EU is more than an economic and trading partner. The EU is trying to build a political identity for itself. I think it will take some time for India to come to understand that.” “But India is realising that the EU is a force to reckon with. There is interest on both sides to develop relations,” he had added.
All the European journalists attending the Marseille Summit agreed that there was a complete lack of information from the Indian mission in Brussels where the EU is seated.
European journalists pointed to “no press release,” “no media briefing,” “no pertinent information on the Embassy website,” nor a “call back to provide information from the Indian Ambassador’s office in Brussels.”
European journalists pointed to “no press release,” “no media briefing,” “no pertinent information on the Embassy website,” nor a “call back to provide information from the Indian Ambassador’s office in Brussels.”
Add to the fact that with more than a month of arrival in Brussels, the new ambassador is yet to let the Brussels press corps know of his presence through either a press release or otherwise. According to political pundits here, its time for Delhi to rethink the Brussels diplomatic strategy to pump in a new impetus into EU-India relationship.
Wednesday, October 15, 2008
Kosovo precedent: Barroso dismisses, Saakashvili calls it an excuse
Kosovo’s independence was called as a special case by the Western powers while Russia had warned it as a dangerous “precedent” earlier this year but European Commission President Jose Manuel Barroso on Tuesday (October 14) dismissed Moscow’s “Kosovo” comparison with the “South Ossetia and Abkazia,” as baseless.
Addressing a joint press conference in Brussels, along with Georgian President Mikheil Saakashvili, Commission President Barroso said, “From the start, we’ve said that Kosovo cannot create a precedent. We don’t believe that any parallels should be drawn between the situation in Kosovo and the Georgian regions.”
Answering a question from New Europe on the subject, the Commission President said, “Developments have confirmed this. Kosovo has been recognised by a large number of countries in the world, the overwhelming majority of EU member-states, many outside Europe ... while no-one important in the world has recognised the Georgian regions.” Barroso added that the EU would not allow the “red line“ to be crossed, which was full respect for Georgia’s territorial integrity and sovereignty
Stressing the difference between the two cases, Georgian President Saakashvili told journalists, “NATO came to Kosovo to prevent ethnic cleansing while Russia came to Georgia to commit ethnic cleansing.”
Russia launched an offensive against Georgia on August 8 to push back a Georgian offensive to retake South Ossetia from Moscow-backed separatists and Moscow recognised the regions as independent states following the five-day war.
Moscow said it was protecting Russian citizens in the region from Georgian aggression, but Tbilisi accused Moscow of “ethnic cleansing” of the region to cement control over the disputed parts.
Commenting on their first face-to-face talks slated for Wednesday, since Russia invaded Georgia in early August, Saakashvili said, “First Russia has to get out of there, they have no right to be there with tanks and troops,” adding, “We would be more than happy to cooperate with any community, any representative but not in this kind of situation.” He accused Russia of “setting up illegal bases, illegal checkpoints and they are basically making fun of international law and international justice.”
President Saakashvili branded representatives of Georgia’s rebel regions “ethnic cleansers” and casting doubt over whether international talks with Russia would be successful. “We don’t think these people are politicians, we think they are ethnic cleansers and we think they are criminals,” he said.
EU needs Russia
On the question of restarting negotiations with Moscow on a new partnership deal, President Barroso said that it was not "a gift for Russia" from the EU, adding that for the EU, there were financial, investment and economic interests to negotiate with Russia on a new Cooperation and Partnership Agreement.
Citing sectors like fighting climate change and maintaining energy security as major points of cooperation, Commission President said, “I think it is in the interest of the EU to keep the dialogue with Russia to promote stability in Europe.”
Since the unilateral declaration of independence in February this year, the EU has tried to avoid parallels between Georgian breakaway regions of South Ossetia and Abkazia, saying Kosovo is "unique" with 20 out of 27 EU states recognised the unilateral declaration without an EU mandate.
Although Russia has withdrawn from most of Georgia in line with an EU-brokered ceasefire, Tbilisi is furious at the continuing presence of 7,600 Russian troops in the Georgian rebel regions of South Ossetia and Abkhazia.
Addressing a joint press conference in Brussels, along with Georgian President Mikheil Saakashvili, Commission President Barroso said, “From the start, we’ve said that Kosovo cannot create a precedent. We don’t believe that any parallels should be drawn between the situation in Kosovo and the Georgian regions.”
Answering a question from New Europe on the subject, the Commission President said, “Developments have confirmed this. Kosovo has been recognised by a large number of countries in the world, the overwhelming majority of EU member-states, many outside Europe ... while no-one important in the world has recognised the Georgian regions.” Barroso added that the EU would not allow the “red line“ to be crossed, which was full respect for Georgia’s territorial integrity and sovereignty
Stressing the difference between the two cases, Georgian President Saakashvili told journalists, “NATO came to Kosovo to prevent ethnic cleansing while Russia came to Georgia to commit ethnic cleansing.”
Russia launched an offensive against Georgia on August 8 to push back a Georgian offensive to retake South Ossetia from Moscow-backed separatists and Moscow recognised the regions as independent states following the five-day war.
Moscow said it was protecting Russian citizens in the region from Georgian aggression, but Tbilisi accused Moscow of “ethnic cleansing” of the region to cement control over the disputed parts.
Commenting on their first face-to-face talks slated for Wednesday, since Russia invaded Georgia in early August, Saakashvili said, “First Russia has to get out of there, they have no right to be there with tanks and troops,” adding, “We would be more than happy to cooperate with any community, any representative but not in this kind of situation.” He accused Russia of “setting up illegal bases, illegal checkpoints and they are basically making fun of international law and international justice.”
President Saakashvili branded representatives of Georgia’s rebel regions “ethnic cleansers” and casting doubt over whether international talks with Russia would be successful. “We don’t think these people are politicians, we think they are ethnic cleansers and we think they are criminals,” he said.
EU needs Russia
On the question of restarting negotiations with Moscow on a new partnership deal, President Barroso said that it was not "a gift for Russia" from the EU, adding that for the EU, there were financial, investment and economic interests to negotiate with Russia on a new Cooperation and Partnership Agreement.
Citing sectors like fighting climate change and maintaining energy security as major points of cooperation, Commission President said, “I think it is in the interest of the EU to keep the dialogue with Russia to promote stability in Europe.”
Since the unilateral declaration of independence in February this year, the EU has tried to avoid parallels between Georgian breakaway regions of South Ossetia and Abkazia, saying Kosovo is "unique" with 20 out of 27 EU states recognised the unilateral declaration without an EU mandate.
Although Russia has withdrawn from most of Georgia in line with an EU-brokered ceasefire, Tbilisi is furious at the continuing presence of 7,600 Russian troops in the Georgian rebel regions of South Ossetia and Abkhazia.
Tuesday, March 18, 2008
“Better job = Better pay”- Barroso
Tripartite social summit cites more attention for education
The European Union is a far-away institution that does not care for ordinary European citizens and this was the notion that the “Tripartite Social Summit for Growth and Employment: An Instrument of Social Dialogue,” addressed prior to the European Council last week.
Answering journalists’ questions, Jose Manuel Barroso, President of the European Commission, defined a better job saying, “Better jobs are jobs that first of all better paid.” Those need to be also “sustainable,” he added.
Europeans fighting rising prices and lower wages were addressed as Barroso continued, “We cannot create a competitive Europe if we leave some citizens on the margins.”
Reiterating the importance of the Lisbon Strategy, Barroso said, “Lisbon strategy is not growth for growth sake but (our) aim is a modern Europe. A Social Europe and an environmental friendly Europe.”
Among others present at the press conference were G. Toifel, President, UEAPME; C. Einem, President, CEEP; E. A. Seilliere, President, BUSINESSEUROPE; J. Monks, Secretary General, ETUC/CES; J. Jansa, Prime Minister of Slovenia and President of rotating EU Council; Vladimir Spidla, European Commissioner for Social Affairs.
Slovenian Prime Minister Janez Jansa talked of health and safety of work place calling Lisbon Agenda reforms as not only just “EU level” but also to be addressed at “national level” and at the level of “citizens.”
Reiterating, “the renewed Lisbon Strategy is working well and is delivering results,” he added, “as shown by the fact that the basis of the European economy is healthy, that 6.5 million new jobs have been created, that the budget deficit has been halved in comparison with 2005 and that the European growth rate stands at 2.9 percent.”
Another area Jansa stressed was wind energy where the prime minister said, “employment tripled.”
Calling upon journalists to do the needful, the Slovenian prime minister said, “Communication is the key. We need to market our objectives in a better way.”
Monks, representing ETUC, called for “free movement,” to create more “opportunities for new jobs,” and reiterated, “Lisbon has picked up in last three years.”
ETUC gave a warning, saying that the situation on ground was heading from bad to worse as there were 17 million workers in the rich EU bloc living in poverty while another 31 million work for starvation wages. There are fewer and fewer jobs with security while more and more lowpaying jobs are being created, ETUC had lamented.
In this context, talk of “flexicurity,” took an important dimension. Seilliere, president of BUSINESSEUROPE, demanded more flexicurity, saying: “It is about essentially improving the employability of workers.” “Social partnership is one of the main issues,” he added.
Political pundits and social observers however were sceptical of the final outcome in terms of “walk instead of talk,” pointing out that this is just rhetoric that has been repeated once a year at social summits.
Another social strategist added, on condition of anonymity, “There is no solid new agenda at this summit and Slovenian presidency just wants to get over it without a major failure. The social summit will be the highlight of the overall summit.”
The European Union is a far-away institution that does not care for ordinary European citizens and this was the notion that the “Tripartite Social Summit for Growth and Employment: An Instrument of Social Dialogue,” addressed prior to the European Council last week.
Answering journalists’ questions, Jose Manuel Barroso, President of the European Commission, defined a better job saying, “Better jobs are jobs that first of all better paid.” Those need to be also “sustainable,” he added.
Europeans fighting rising prices and lower wages were addressed as Barroso continued, “We cannot create a competitive Europe if we leave some citizens on the margins.”
Reiterating the importance of the Lisbon Strategy, Barroso said, “Lisbon strategy is not growth for growth sake but (our) aim is a modern Europe. A Social Europe and an environmental friendly Europe.”
Among others present at the press conference were G. Toifel, President, UEAPME; C. Einem, President, CEEP; E. A. Seilliere, President, BUSINESSEUROPE; J. Monks, Secretary General, ETUC/CES; J. Jansa, Prime Minister of Slovenia and President of rotating EU Council; Vladimir Spidla, European Commissioner for Social Affairs.
Slovenian Prime Minister Janez Jansa talked of health and safety of work place calling Lisbon Agenda reforms as not only just “EU level” but also to be addressed at “national level” and at the level of “citizens.”
Reiterating, “the renewed Lisbon Strategy is working well and is delivering results,” he added, “as shown by the fact that the basis of the European economy is healthy, that 6.5 million new jobs have been created, that the budget deficit has been halved in comparison with 2005 and that the European growth rate stands at 2.9 percent.”
Another area Jansa stressed was wind energy where the prime minister said, “employment tripled.”
Calling upon journalists to do the needful, the Slovenian prime minister said, “Communication is the key. We need to market our objectives in a better way.”
Monks, representing ETUC, called for “free movement,” to create more “opportunities for new jobs,” and reiterated, “Lisbon has picked up in last three years.”
ETUC gave a warning, saying that the situation on ground was heading from bad to worse as there were 17 million workers in the rich EU bloc living in poverty while another 31 million work for starvation wages. There are fewer and fewer jobs with security while more and more lowpaying jobs are being created, ETUC had lamented.
In this context, talk of “flexicurity,” took an important dimension. Seilliere, president of BUSINESSEUROPE, demanded more flexicurity, saying: “It is about essentially improving the employability of workers.” “Social partnership is one of the main issues,” he added.
Political pundits and social observers however were sceptical of the final outcome in terms of “walk instead of talk,” pointing out that this is just rhetoric that has been repeated once a year at social summits.
Another social strategist added, on condition of anonymity, “There is no solid new agenda at this summit and Slovenian presidency just wants to get over it without a major failure. The social summit will be the highlight of the overall summit.”
Whitewash Summit
Lots of talk, little action, climate change back
The European Summit of 27 leaders of member states last week, under Slovenia’s rotating presidency, hardly raised any expectations, nor any eyebrows, as leaders came, attended and left. The subject of Climate Change, to which Spring Council 2007 was entirely devoted, was once again on top of the agenda for 2008, with leaders trying to balance industrial lobby demands with greenhouse gas emission cuts.
European Commission President Jose Manuel Barroso, who, according to the EU grapevine is lobbying for a second term, was all smiles as he stressed his words to please both the industrial sector and European citizens.
Barroso spoke “in favour of keeping jobs and industry in Europe,” and promised to not only provide an EU-wide breathing space for industries but also get “an international agreement” on carbon dioxide (CO2) emissions.
But an argument to use environmental concessions to keep EU-wide industries on the Continent seemed less convincing as environmental pundits and industry gurus confided on the sidelines of the Spring EU Summit.
Claudia Delpero of WWF told New Europe, “A global agreement will help make industries happier, because rules will be applied to everyone. But a strong global agreement will not be possible without strong European legislation.”
Explaining the underlying reasons for industries to shift locations, Delpero said, “The real question is: would weak environmental laws really keep businesses in Europe? History has shown that major factors for relocation are proximity to markets and labour costs, while environmental laws play only a small role in the relocation factor.
“European businesses should rather take this opportunity to become global leaders in clean technologies. The American car industry provides a very good example: after refusing the idea of fuel standards, the market is now overtaken by cleaner product from Asia. Europe should learn from history and avoid mistakes already seen in the past.”
German Chancellor Angela Merkel echoed the doubts about an international agreement saying, “If there is no international deal, we should already have a (law) ready on how to deal with energy-intensive industries, rather than only starting to think about it if nobody else joins us.”
The European Commission on January 23 had proposed an auction system for CO2 for industries, who immediately protested, arguing this would make it impossible for them to compete with firms in countries with less stringent environmental rules.
The Commission responded by promising to study the problem with an eye to proposing solutions by 2011 in the belief that to do so earlier would damage the EU’s position in global talks on climate change, which are set to culminate in Copenhagen in December 2009.
But at the Summit the conclusions insisted that the issue be “analysed and addressed urgently in the new (law), so that if international negotiations fail, appropriate measures can be taken.”
Moreover, the 27 leaders also diluted ambitious proposals from Nicolas Sarkozy on the creation of a so-called “Union for the Mediterranean” to promote cooperation in the area.
The first public salvo was fired by the European Parliament President Hans-Gert Poettering, insisting on a parliamentary dimension of the Union for the Mediterranean. Calling for an explicit reference to the Barcelona Process (launched in 1995 for Mediterranean region) said, “I am convinced that the European Commission will fully take into account the parliamentary dimension of the Union for the Mediterranean in its proposal and that the European Parliament will be fully involved in the debate which will lead to the final decisions on this project.”
According to sources familiar with closed-door talks, there were reservations from member states from Central and Eastern Europe that a Union for the Mediterranean would divert precious EU funds away from the region.
Turkey also immediately was in the news as Ankara got the notion that by being invited to join Union for the Mediterranean, its EU membership application will be left on the back burner forever.
Answering a question from a Turkish journalist, Slovenian Premier Janez Jansa said, “Turkey was not mentioned at the talks.” Saving the situation, he said, “The project for a Union for the Mediterranean was presented as an upgrade of the Barcelona process.” “And sometimes, changes get a new name,” he concluded.
The European Summit of 27 leaders of member states last week, under Slovenia’s rotating presidency, hardly raised any expectations, nor any eyebrows, as leaders came, attended and left. The subject of Climate Change, to which Spring Council 2007 was entirely devoted, was once again on top of the agenda for 2008, with leaders trying to balance industrial lobby demands with greenhouse gas emission cuts.
European Commission President Jose Manuel Barroso, who, according to the EU grapevine is lobbying for a second term, was all smiles as he stressed his words to please both the industrial sector and European citizens.
Barroso spoke “in favour of keeping jobs and industry in Europe,” and promised to not only provide an EU-wide breathing space for industries but also get “an international agreement” on carbon dioxide (CO2) emissions.
But an argument to use environmental concessions to keep EU-wide industries on the Continent seemed less convincing as environmental pundits and industry gurus confided on the sidelines of the Spring EU Summit.
Claudia Delpero of WWF told New Europe, “A global agreement will help make industries happier, because rules will be applied to everyone. But a strong global agreement will not be possible without strong European legislation.”
Explaining the underlying reasons for industries to shift locations, Delpero said, “The real question is: would weak environmental laws really keep businesses in Europe? History has shown that major factors for relocation are proximity to markets and labour costs, while environmental laws play only a small role in the relocation factor.
“European businesses should rather take this opportunity to become global leaders in clean technologies. The American car industry provides a very good example: after refusing the idea of fuel standards, the market is now overtaken by cleaner product from Asia. Europe should learn from history and avoid mistakes already seen in the past.”
German Chancellor Angela Merkel echoed the doubts about an international agreement saying, “If there is no international deal, we should already have a (law) ready on how to deal with energy-intensive industries, rather than only starting to think about it if nobody else joins us.”
The European Commission on January 23 had proposed an auction system for CO2 for industries, who immediately protested, arguing this would make it impossible for them to compete with firms in countries with less stringent environmental rules.
The Commission responded by promising to study the problem with an eye to proposing solutions by 2011 in the belief that to do so earlier would damage the EU’s position in global talks on climate change, which are set to culminate in Copenhagen in December 2009.
But at the Summit the conclusions insisted that the issue be “analysed and addressed urgently in the new (law), so that if international negotiations fail, appropriate measures can be taken.”
Moreover, the 27 leaders also diluted ambitious proposals from Nicolas Sarkozy on the creation of a so-called “Union for the Mediterranean” to promote cooperation in the area.
The first public salvo was fired by the European Parliament President Hans-Gert Poettering, insisting on a parliamentary dimension of the Union for the Mediterranean. Calling for an explicit reference to the Barcelona Process (launched in 1995 for Mediterranean region) said, “I am convinced that the European Commission will fully take into account the parliamentary dimension of the Union for the Mediterranean in its proposal and that the European Parliament will be fully involved in the debate which will lead to the final decisions on this project.”
According to sources familiar with closed-door talks, there were reservations from member states from Central and Eastern Europe that a Union for the Mediterranean would divert precious EU funds away from the region.
Turkey also immediately was in the news as Ankara got the notion that by being invited to join Union for the Mediterranean, its EU membership application will be left on the back burner forever.
Answering a question from a Turkish journalist, Slovenian Premier Janez Jansa said, “Turkey was not mentioned at the talks.” Saving the situation, he said, “The project for a Union for the Mediterranean was presented as an upgrade of the Barcelona process.” “And sometimes, changes get a new name,” he concluded.
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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