Europe
Sarkozy backs Brazil's ambition for permanent Security Council seat
The BBC reports that at the EU-Brazil summit yesterday President Sarkozy backed Brazil's ambition to attain a permanent seat on the UN Security Council. Sarkozy is also due to sign a number of defence agreements with Brazil, among which is a deal for France to help Brazil build four conventional submarines and facilitate the purchase of 50 French Cougar helicopters to be built in Brazil.
The EU and Brazil have also agreed to speak with "one voice" on the financial crisis at the next G20 summit in London in April, reports Deutsche Welle. Agreements were reached on plans to reform the IMF, according to Reuters, which quotes Sarkozy arguing that "We cannot allow a single financial institution to be uncontrolled or unsupervised."
EUbusiness Reuters DW Euronews BBC
EU staff get a free ride for Christmas
An Austrian member of the European Parliament has denounced the EU practice of paying for employees' Christmas travel home at a time of financial crisis, reports New Europe. Last year the European Commission and Council spent just under 47 million euros on Christmas travel arrangements, which Hans-Peter Martin MEP has denounced as a "shocking priviledge."
New Europe Open Europe blog
Russia threatens Europe with gas shortages
The Guardian reports that Russian gas provider Gazprom has warned western Europe that it could be hit by gas shortages this winter due to a dispute with Ukraine. Russia is threatening Ukraine over an alleged 2bn dollars of arrears. Viktor Zubkov, who is Russian First Deputy Minister as well as Chairman of Gazprom, said: "We cannot rule out that the position of the Ukrainian side and certain steps, which are linked to gas transit through Ukrainian territory, could lead to a disruption of supply stability to Europe."
The BBC notes that ministers from the world's major gas-exporting countries have gathered in Moscow to discuss closer co-operation, leading to suggestions that they want to set up an organisation similar to the oil producers' cartel, Opec.
The Mail notes that Russia has also threatened to supply surface-to-air missiles to Iran, despite Western concerns over its nuclear ambitions. Meanwhile, the BBC reports that a bill to extend the presidential term from four to six years has been backed by Russia's upper house of parliament after regional assemblies endorsed it. The article notes that the bill is being seen as a sign Vladimir Putin may return to the presidency soon.
Mail Guardian Metro Echos Reuters Irish Times BBC BBC 2
Czech PM outlines priorities for EU presidency
The Czech PM Mirek Topolanek, due to take over the EU presidency on 1 January, has said that economic stimulus programmes must have a limited timeframe and respect the rules of the common market and the stability pact, reports Deutsche Welle.
Topolanek has also sought to reassure concerns over President Vaclav Klaus, who has previously dubbed the EU presidency as "unimportant", reports EUbusiness. The Czech PM has outlined his priorities for the six-month presidency as 'the 3 E's': economy and the crisis, energy security and external relations (most notably with President-elect Obama).
DW EUbusiness
German Finance Minister: Debt-financed stimulus package not the answer to crisis
In the WSJ Germany's Finance Minister Peer Steinbrück writes that we need to learn from the financial crisis. He argues that "The laissez-faire capitalism of the Chicago school of economics has proven to be unsuitable as a model for the supervision of financial markets."
He rejects claims that Germany has been slow to cooperate with other EU countries in reacting to the crisis: "The German government -- despite claims to the contrary -- is pursuing a decidedly countercyclical economic policy in close cooperation with our European and global partners." However, he writes that "It is more than questionable whether a large-scale, debt-financed stimulus package would actually enable Germany's economy to emerge from the recession earlier or in better shape."
WSJ-Steinbruck
Industrial orders in eurozone in sharpest drop on record
There has been a sharp fall in eurozone industrial orders, with October orders down 15.1% on a year earlier - the sharpest drop since 1995 when comparable records began, reports the FT. The Kiel Institute for the World Economy, based in Germany, has predicted that Germany's economy will contract by 2.7% in 2009, and the eurozone by the same amount.
Meanwhile a survey of confidence of Belgian business, viewed as a strong indicator of the health of the euro-zone economy, fell to its lowest level since records began in 1980, writes the WSJ.
FT WSJ
EU and IMF impose austerity measures on Latvia in return for emergency loans
Latvia will receive a 7.5 billion euro loan from the EU and the IMF to help its suffering economy, hit hard by the ongoing global financial crisis. As part of the loan agreement, public sector wages are to be slashed, alongside deep cuts to government expenditures, cuts to income tax and increases in VAT rates, with the European Commission and the Ecofin council in effect becoming the superintendents of the Latvian economy, EUobserver reports.
An EU statement says that "this will also help meet the conditions for the adoption of the euro." However, Edward Hughes argues on the FFOE blog that "a bailout program without devaluation is a mistake", adding that "currency policy has become almost a matter of national strategic importance in Latvia".EUobserver FFOE Blog
European Commission gives its conditional approval of EDF's deal to buy British Energy
The Guardian reports that the European Commission yesterday cleared the £12.5bn takeover of Britain's main nuclear power operator British Energy by French state-owned group EDF. The Independent notes that the Commission will force a sell-off of assets to allay competition fears. In return, EDF will avoid a drawn-out inquiry into its acquisition of Britain's biggest electricity provider in a deal that will put it at the forefront of UK nuclear power development.
In the Times David Wighton describes the deal as "critical to Britain's future energy security", arguing that "the sooner that work starts on building our next generation of nuclear power stations, the better."
Independent Times-Wighton Mail Guardian EUbusiness European Voice
Bulgarian PM asks for more time to defeat corruptionIn an interview with the Times, Bulgarian Prime Minister Sergei Stanishev has said that it was unfair to expect his country to have reached the same levels as Sweden after only two years as a member of the European Union. The paper notes that there are growing calls within Bulgaria to look for more for financial support from Russia, which is offering lucrative energy deals through Gazprom.Times
Barclays voices concern over EIB lending fund
Barclays has made moves to clarify what it thinks were initial misunderstandings about the nature of the European Investment Bank's emergency lending fund for small businesses, reports the Telegraph. The head of Barclays Local Business Banking said that, "My concern is that people don't really understand what the EIB is about...It's not a cash bail out for small and medium sized enterprises. It's a slightly cheaper form of lending." He added that the money was not available to cover short term cash flow problems for businesses.
Telegraph
The UK plans to make a fresh attempt next year to persuade the EU to step up economic sanctions against Robert Mugabe's regime in Zimbabwe.
FT
The Organisation for Security and Cooperation in Europe says it will close its mission in Georgia early in 2009 because of Russian opposition.
IHT BBC
Passengers should be compensated by airlines if their flight is delayed due to mechanical faults, the European Union's highest court ruled yesterday.
European Voice
Emil Boc has been sworn in as the new Romanian PM, becoming the youngest ever Romanian leader.Euronews
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