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Open Europe : Daily Press Summary

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Cypriot Central Bank Head: Capital controls may last more than seven days;Cyprus gets more time to meet deficit targets In an interview with the FT, Cypriot Central Bank Governor Panicos Demetriades said, “I can’t really tell you if it will be seven or 14 days before capital controls end…We have to lift them gradually.” The WSJ reports that, according to a draft copy of the Cypriot bailout agreement, the country will be given an extra year to meet its deficit targets, although it will still need to reach a 4% primary budget surplus by 2017 (from a 2.4% deficit currently). The draft also sees the creation of a fund to manage revenues from Cypriot gas reserves. In an interview with Famagusta Gazette, Yiannakis Omirou, President of the Cypriot Parliament, called for Cyprus to leave the euro as it has “no future” under the Troika.

It was reported over the weekend that large depositors with over €100,000 in the Bank of Cyprus could lose up to 60% of their money. The Cypriot government has unveiled a twelve point plan to help boost economic growth, which includes lifting the ban on casinos. A new commission will launch in Cyprus today tasked with investigating outflows of money from the country ahead of the bailout. Cypriot President Nicos Anastasiades pledged that everyone would be subject to scrutiny, even members of his family, after press reports over the weekend suggested some had moved large amounts of money abroad ahead of the bailout.

Russian First Deputy Prime Minister Igor Shuvalov said over the weekend, “If someone loses money , sorry, but the Russian government will take no action in this situation.” Separately, the UK’s Prudential Regulation Authority has said that UK depositors with an account in Laiki Bank UK will automatically have their account transferred to the Bank of Cyprus UK. Open Europe’s Raoul Ruparel appeared on Sky News Jeff Randall Live on Thursday evening discussing the capital controls in Cyprus. Raoul was also quoted by Swedish daily Svenska Dagbladet and French newspaper Liberation discussing the Cypriot crisis. Open Europe’s Pawel Swidlicki was quoted by the Polish newspaper Gazeta Prawna.
FT FT 2 FT 3 CityAM IHT Svenska Dagbladet Gazeta Prawna Liberation WSJ FAZ WSJ 2 Kathimerini Kathimerini 2 FT 4 Kathimerini 3 Telegraph FT Weekend FT Weekend 2 FT Weekend 3 WSJ 3 WSJ 4 Saturday's Guardian Sunday Times Süddeutsche BBC EUobserver Euractiv Telegraph Süddeutsche Welt DWN Famagusta Gazette Spiegel Zero Hedge

Mats Persson: While Germany is accused of domination its taxpayers feel increasingly vulnerable
Writing in the Sunday Telegraph, Open Europe Director Mats Persson argued that, while Germany has emerged as the “chief villain” of the eurozone crisis in the wake of the Cypriot bailout, “It is easy to see why German taxpayers have had enough.” He added, “two vital pillars of Germany’s post-war policy — commitment both to Europe and to sound money – are now clashing head on. This is fuelling frustration…Perhaps it’s not surprising, therefore, that this month saw the launch of Germany’s first anti-euro party, Alternative für Deutschland.” The article was cited by the Polish business website Biznes.
Sunday Telegraph: Persson Guardian: Elliott Times: Poirier Biznes

Italian President vows to stay on in attempt to form new government
Italian President Giorgio Napolitano on Saturday dismissed reports he was considering stepping down in order to pave the way for new elections, following the failure of negotiations on Friday to form a new Italian government. Instead Mr Napolitano has nominated two small groups of mediators to come up with proposals for a government program of political and economic reforms that could be supported by the parties in parliament. The two groups will start work today.

Former Prime Minister Silvio Berlusconi’s party has consistently said it wants a grand coalition or fresh elections while the centre-left group has said it will consider the groups’ proposals. Meanwhile Beppe Grillo immediately named the members of the groups “nannies of democracy”. Open Europe’s Vincenzo Scarpetta was quoted by the Independent discussing the prospect of new elections.
FT Independent Corriere della Sera Sole 24 Ore Sole 24 Ore 2 La Stampa Corriere della Sera 2 Sole 24 Ore 3 Corriere della Sera 3 Sole 24 Ore 4 Corriere della Sera 4 Sole 24 Ore 5

Monday’s Sun reported that around 100 backbench Conservative MPs have signed a letter demanding that David Cameron enshrine his EU referendum pledge in legislation now.
Mail on Sunday Monday's Express Sunday Times

The Guardian reports that France and Germany have declined to take part in the UK Government’s ‘Balance of competences’ review.
Guardian FT EUobserver

A new Dutch opinion poll has revealed that 55% of Dutch citizens now regret the introduction of the euro. The poll also shows that Geert Wilders' Party for Freedom has again emerged as the country's biggest political party, reports De Telegraaf.
De Telegraaf

Greek central bank chief George Provopoulos announced yesterday that the deadline for the recapitalisation of Greek banks will be extended by a few weeks, possibly until the end of May.
FAZ Handelsblatt Reuters

The FT reports that, according to research by Deutsche Bank, small companies in Italy and Spain pay 3% - 4% more interest on loans than similar businesses in Germany or France.
FT

Eurostat announced this morning that unemployment in the eurozone reached a new record high of 12% in January this year after it revised up its original estimate. The level remained the same in February.
Eurostat

Monday’s FT reported that UK businesses have warned they will face sharply higher energy costs than their EU competitors under the UK’s carbon floor price if the European Parliament refuses to prop up the EU carbon market, as British carbon prices will likely be much higher than those in the EU market.
Monday's FT

The FT reports that US institutions are considering whether it still makes sense to base their Europe, Middle East and Africa (EMEA) business in London as they look at ways to mitigate the impact of the EU’s bonus caps.
Open Europe Research: Continental Shift FT FT Analysis

Former Ministers Nicholas Soames and Frank Field who co-chair the Cross Party Group on Balanced Migration wrote in Friday’s Telegraph that “EU members should have powers, during periods of high unemployment, to restrict the free movement of labour at present guaranteed in EU law.”
Friday's Telegraph: Field and Soames Friday's Guardian Friday's Telegraph Saturday's Express Sunday Times

New rules designed to ensure EU/EEA doctors have to speak English well enough to treat patients come into force today, reports the Telegraph.
Telegraph

In an interview with Spiegel Online, former German Chancellor Gerhard Schröder said that Germany is “destined to assume leadership within the European Union” due to its economic power but it “could only lead in Europe in the way that porcupines mate…very carefully.”
Spiegel online EU observer

The FT reported over the weekend that No 10 has denied Andrew Mitchell has been offered the post of the next UK EU commissioner quoting an official as saying “To say that someone has been promised a job is wrong”.
FT Weekend

The BBC reports that the EU mission to train Malian soldiers is due to begin.
BBC


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