Europe
EU proposal discriminates against private equity, industry warns
In an interview with Euractiv, Javier Echarri, Secretary-General of the European Private Equity and Venture Capital Association (EVCA), criticised the EU's proposed directive on alternative investment funds for being flawed and for discriminating against private equity, particularly through its strict disclosure requirements.
He said, "Requiring private equity-backed companies to disclose a quantity of information almost equivalent to what listed companies have to disclose is discrimination against those companies vis-à-vis their own competitors, which are often backed by a sovereign wealth fund, a rich investor or a family. They play the same game, but they will not have the same requirements." He added that 70% of the industry will have to comply with the new burdensome requirements.
A leader in the FT notes, "Try as it might, the Commission cannot explain why, exactly, it is proposing this hotchpotch...what politicians in Germany and France want is to smash some old scapegoats in the face."
Les Echos reports that at a meeting with international financiers in Paris last Thursday French Finance Minister Christine Lagarde addressed the proposal, saying "[the proposal] is a step forward but it does not meet my ambitions". According to the article, Lagarde wants to bring hedge funds which are registered offshore but operate in the EU within the scope of the regulation.
Melvyn Krauss, Senior Fellow of the Hoover Institution, argues in the FTD that if European investors were allowed to invest only in EU-regulated hedge funds, and not in US hedge funds, significant losses would occur in Europe. He also argues that the proposal is driven by protectionism and particularly French dissatisfaction of the concentration of hedge funds in London.
Wirtschaftswoche quotes Swedish Finance Minister Anders Borg, saying that "no one would be doing Europe a favour if the financial market were to shift from London to New York or anywhere else [as a result of burdensome regulation]".
The Sunday Telegraph reported that London's Mayor Boris Johnson is intending to help the City develop a strategy in the EU to lobby against the Directive.
City AM FT: Leader Sunday Telegraph Euractiv Euractiv 2 City AM-Fraser FTD Les Echos
European Parliament President to receive £156,000 pay rise
The NOTW reported that the next European Parliament President is set to get an extra £113,016 to rent a home plus £43,704 for entertaining on top of the current £36,778-a-year living allowance. The planned £156,720 pay rise, detailed in secret EU documents leaked to the paper, is to give the European Parliament President "more dignity". The pay rise would make his total yearly income around £214,000 and put the EP President in the same pay bracket as the President of the European Commission.
NOTW
France and Germany create 'working group' to block reform of EU farm policy;
French farm minister: "more regulation" will be France's guiding line in negotiations on the CAP
France and Germany have announced they will set up a 'working group' charged with outlining the future of the EU's Common Agricultural Policy (CAP) after 2013. Following a meeting with President José Manuel Barroso last week, French Farm Minister Bruno Le Maire, said that "more regulation" will be France's guiding line in negotiations on the CAP, adding that that the agricultural sector is far too "strategic" to be left to market forces alone. "It is absolutely necessary to regulate production," he said. He also announced that France and Germany are determined to resist reform of the CAP's distorting subsidies to dairy farmers. He drew a parallel between the European mobilisation to help the financial sector and how the same should be done to support the agricultural sector: "We must do with the agricultural sector what we have done with the financial sector. This will be our guiding thread for the reform of the CAP in 2013", according to L'Express.
'The working group' will now tour EU capitals, starting in London before going to Madrid, Rome, Bucharest and Warsaw, trying to win support for its position. The Commission is due to table its first ideas on CAP reform in September 2010.
Euractiv AFP L'Express La Tribune La France Agricole
Barroso nomination delayed until autumn
El Mundo reports that the European Parliament has delayed its vote on Barroso until the autumn. Swedish President Fredrik Reinfeldt, who currently holds the presidency of the EU, said "we have spoken with various group leaders and there will not be a decision on Barroso in the European Parliament in July".
Meanwhile, Liberation reports that Daniel Cohn-Bendit (co-leader of the European Greens) has suggested several people who would be 'much better than Barroso' for the post of European Commission President. They include Mary Robinson, previously Human Rights Advisor to the UN; ex-Belgian PM Guy Verhofstandt; current French PM Francois Fillon; or former EU Commissioner Chris Patten.
Monde Liberation El Mundo Le Figaro Liberation Svenska Dagbladet
Irish government delays report on spending cuts amid fears of Lisbon Treaty referendum backlash
The Irish Independent reports that ministers within the Irish government are unwilling to publish a new report on public spending cuts amid concerns it will scare voters ahead of the second Lisbon Treaty referendum. The report by the Expenditure Review Committee will set out options for €5bn worth of cuts to public spending and efficiencies in Government.
Taoiseach Brian Cowen and Finance Minister Brian Lenihan are still considering the issue of publication, amid differing views within the Cabinet. A leader in the paper notes that, "The rationale - if this absurdity can be distinguished by such a term - is that its bleak contents might frighten the voters, increase their discontent, and prompt them to vote 'No' in the second Lisbon referendum in the autumn".
Irish Independent Irish Independent: Sheahan Irish Independent: Leader
European leaders keen to help Brown in order to keep Lisbon Treaty on track
The Times reports that European leaders are so desperate for Gordon Brown to stay in power until after the Lisbon Treaty comes into force that they are willing to make diplomatic compromises to shore up his political position. Diplomatic sources told the paper that European leaders fear that a leadership challenge and early election could sink the Treaty, due to come into force by Christmas. The Conservatives are committed to a referendum if they are elected before it is ratified. The paper notes that the Prime Minister will be able to test the limits of this new power today when he travels to Evian in France with Lord Mandelson for a one-day summit with President Sarkozy.
Times
Handelsblatt: CSU demands could delay German Lisbon Treaty ratification until after German elections in September
Handelsblatt reports that the German ratification of the Lisbon Treaty could be delayed until after the German elections on 27 September, because of the demands of the Bavarian Christian Democrat CSU party with regards to the German Constitutional Court's requirement that a new law be passed to boost the role of the German Parliament in EU decision-making. Vice-Chairman of the SDP group Angelica Schwall-Düren also opposes fast tracking the law through parliament, saying "we don't want any modifications to the German Constitution, and especially not during the summer break".
Merkur quotes CDU MEP Elmar Brok remarking that the demands of the CSU mean that "Germany of all countries is now enforcing the destructive powers of Europe". It further reports that Chancellor Angela Merkel wants to pass the during the summer break.
Meanwhile, the German Europe Ministers of the various Bundesländer have demanded more of a say as a result of the Constitutional Court's decision, with the Chairman of the conference of Bundesländer Wolfgang Reinhardt saying: "the times when a German government takes decisions in back rooms in Brussels are finally over", reports DPA.
Handelsblatt Welt Merkur DPA1 DPA 2 AFP
Mario Mauro drops bid to become President of European Parliament
EUobserver reports that the centre-right Italian MEP Mario Mauro has abandoned his bid to become European Parliament President; Polish conservative Jerzy Buzek is now the sole candidate.
El Mundo EUobserver
Javier Solana to quit as EU foreign policy chief
EUobserver reports that EU High Representative for Common Foreign and Security Policy Javier Solana will step down when the post expires in autumn after 10 years in the job. Handelsblatt notes that Swedish Foreign Minister Carl Bildt and Enlargement Commissioner Olli Rehn are seen as possible successors. If the Lisbon Treaty is ratified, Solana's successor will gain more power, becoming Vice-President of the European Commission, chair of all the EU foreign minister councils and head of a new EU diplomatic service.
Coulisses de Bruxelles L'Express RFI IHT EUobserver Diario de Noticias
Government prepares for battle with EU over Lloyds and RBS
The Independent on Sunday reported that the Government is preparing for a battle with the EU over threats to break up RBS and the Lloyds Banking Group, which both received large injections of state aid. The article quoted sources in the City saying, "The Government is terrified that the EU is getting ready to issue an ultimatum over Lloyds and RBS, forcing them to break up following the massive state injections of capital last autumn. This row is heating up and is likely to come to a head quite soon".
Independent on Sunday Sunday Telegraph
Lord Mandelson warns that loosening competition rules could threaten single market
In an interview with the FT, Business Secretary Lord Mandelson said that while he agreed with the temporary loosening of EU competition rules to help struggling companies through the recession, he feared the changes could become permanent. He said, "There is no justification for having the rules permanently weakened. That will create a threat to the single market" and added that Britain was supporting new, EU-level supervisory and regulatory powers for the financial services sector, but that it expected a further degree of support from critics of "Anglo-Saxon capitalism".
He also said, "I hope that the quid pro quo is understood and that people understand the need for balance. We accept the need for reform but we will stand up for and defend important parts of the City of London."
FT
French Finance Minister questions relevance of G8
The FT reports that, ahead of the G8 summit in L'Aquila this week, French Finance Minister Christine Lagarde questioned the relevance of the group of industrialised nations, and said "The G8 is much older [than the G20] and without doubt is much less pertinent given its composition and the evolution of the world...The G8 absolutely must be enlarged to adapt to today's realities. Major actors [like India, China or Mexico] are invited with a small folding seat on the side."
Times City AM Irish Independent WSJ FT FT 2 EUobserver
Centre-right dominates Bulgarian elections
EUobserver reports that Bulgaria's Socialist-led coalition looks likely to fall after the general election on Sunday gave a clear victory to the centre-right opposition (GERB) party. With nearly 40% of the votes the victory was a blow to the socialists who received a less than expected 17.7%. GERB is now in talks with the smaller right wing groups in order to form a coalition government.
EUobserver Euractiv Monde Coulisses de Bruxelles IHT El Pais La Razon ABC
France warns Sweden to respect its view on Turkish EU membership
EUobserver reports that during a visit to Sweden on Friday, French President Nicolas Sarkozy warned Sweden to respect France's views on Turkey's accession to the EU, and said "France will not be against the opening of new chapters under the Swedish chairmanship but, of course, these chapters should allow that Turkey should be an associate member of Europe and not a fully-fledged member."
Meanwhile, El Mundo reports that Spanish Prime Minister José Luis Zapatero has said he is "clearly favourable" to Turkey joining the EU. He added that "Turkey requested membership, started the negotiation process to complete accession and for reasons which are not easily explicable there is a temptation to delay it".
An opinion piece in the Irish Times discusses the confusing nature of the European Union, claiming that 35 different chapters, including the recently discussed "taxation chapter" must be unanimously agreed upon by European countries before Turkey can enter the EU.
EUobserver NewEurope Xinhua El Mundo Irish Times
Turkey approves Nabucco gas pipeline deal
EUobserver reports that on 13 July Turkey will host the signing of an inter-governmental agreement on the Nabucco gas pipeline, which aims to reduce Europe's dependence upon Russia for gas. The article notes that the deal will "secure the legal basis and conditions for the use of the pipeline crossing EU candidate country Turkey and member states Bulgaria, Romania, Hungary and Austria".
EUobserver BBC
EU to improve security after several incidents of "espionage"
El País reports that the EU is going to improve its security system following various incidents where senior officials, including Javier Solana, have been spied upon. Solana said that he was "subject to espionage for months, without being aware, by a non-European power". The spies reportedly include an "attractive blonde intern", a foreign civil servant and an IT technician. The article notes that the laptop of the General-Secretary of the Council, who deals with "thousands of highly confidential documents" was subject to espionage. Another source told El País that "it isn't only Solana", adding that "there have been other cases".
El Pais Diario de Noticias
City AM notes that traders have broadly welcomed the Commission's proposal for more transparency in derivatives trading, but warned that expanding a central clearing house to include all derivatives - alongside one already planned for the US - would be confusing.
City AM WSJ EUobserver
Writing for the Guardian's Comment is Free website, Simon Tilford, Chief Economist at the Centre for European Reform, argues that calls for a renegotiation of the Lisbon Treaty "or of the UK's relationship with the EU more generally, ignore that this would inevitably lead to at best semi-detached membership of the EU, and more probably divorce."
Comment is Free
The FT reports that Pascal Lamy, Director-General of the World Trade Organisation, has said that bank bail-outs pose a threat to free trade, and will urge the G8 to resist growing pressures for protectionist measures.
FT WSJ
Writing in the FT, Wolfgang Münchau argues, "Judging by the co-ordination failure at the level of the European Union, the persistent failure to deal with the continent's 40 or so cross-border banks at European level, and in particular Germany's inability to sort out its toxic-asset contaminated Landesbanken, the economic prospects for the eurozone are infinitely worse [than the US]."
FT: Münchau
Writing in Handelsblatt, David Marsh argues rise of 'eurosceptic influence' in British politics is an "epochal influence on the global financial market".
No link
An article in New Europe examines the Swedish EU Presidency with the headline, "Now it's up to Sweden to solve all the EU's problems", but reports that Greens in the European Parliament have said they do not expect Sweden to achieve its goals in reducing carbon emissions and tackling global warming.
NewEurope Open Europe briefing
An article in the IHT examines Swedish Foreign Minister Carl Bildt and comments upon his unpopularity in countries "with questions to answer on human rights". He notes that a foreign affairs goal of the Swedish EU presidency is to ease tensions between Ukraine and Russia.
No link
The Observer notes that a new global blacklist of planes unfit to fly will be discussed this week at a summit meeting between Antonio Tajani, the European Transport Commissioner, and Robert Kobeh González, President of the International Civil Aviation Organisation.
Observer
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