Bundesbank attacks ECBs bond-buying scheme in evidence for German Constitutional Court;Merkel: Germany would need the ECB to raise interest ratesIn an opinion paper presented to the German Constitutional Court ahead of its June ruling on the ECBs eurozone crisis policies, the Bundesbank has questioned the necessity of the OMT bond-buying programme, arguing that it presents a great risk to the ECBs independence and to taxpayers, reports Handelsblatt. The bank argues that the ECBs main justification for the programme that its interest rates were not being transmitted to the real economy in stressed countries due to speculation about a euro break-up relied on strongly subjective elements. Even if this mechanism has broken down, said the document, the question arises as to whether and why such a development must be corrected. The bank also argues that it is not the role of the ECB to guarantee the irreversibility of the single currency, and expressed doubts over the conditionality attached to the OMT.
Meanwhile, in an unusually forthright comment on central bank policy, German Chancellor Angela Merkel yesterday said that "the ECB is in a difficult position. For Germany it would actually have to raise rates slightly at the moment, but for other countries it would have to do even more for more liquidity to be made available". Open Europes Nina Schick is quoted in the Telegraph as saying that "while the inherent problems with the eurozone once-size-fits-all monetary policy is nothing new, theres a growing realisation within Germany on just how difficult it will be to pull this off in practice".
FT Bundesbank OMT opinion Handelsblatt WSJ FT Telegraph Telegraph: Warner FAZ FAZ 2 FAZ: Steltzner
Swedish daily Svenska Dagbladet has a feature by its foreign editor Therese Larsson looking at the UKs debate about the EU. The paper quotes Open Europes Director Mats Persson discussing the different options for the UK inside and outside of the EU.
Open Europe research: Trading places SvD
French business magazine LAgefi credits Open Europe for publishing on its blog the exclusive leaked memo highlighting the eleven participating countries major concerns about the European Commissions proposal for a financial transaction tax.
Open Europe blog LAgefi
Silvio Berlusconi has said this morning he sees no real problems regarding the formation of the new Italian government, which is to be led by Prime Minister designate Enrico Letta. Berlusconi also told Corriere della Sera yesterday, one may consider telling the EU that, with the economy in recession, the fiscal pact and the 3% deficit-to-GDP limit arent sustainable.
Repubblica La Stampa Corriere della Sera Corriere della Sera: Berlusconi FT: Leader Economist: Leader Economist
New German anti-euro party reaches 10,000 members in first seven weeks of existence;
New ZDF poll puts CDU/CSU on 40%
The new German anti-euro party Alternative für Deutschland (AfD) has reached 10,000 members seven weeks after it was launched, reports Die Welt. The paper also says that AfD head Bernd Lucke contacted Bernd Schlömer, head of the Pirate party, to propose an alliance critical of the euro and eurozone bailouts last year. Schlömer says that he could not work with AfD as they are too conservative and narrow-minded.
Separately, a new ZDF poll on the upcoming German elections puts Angela Merkels CDU/CSU on 40%, the SPD on 28%, the Greens on 14% and Die Linke on 6%. Merkels junior coalition partner the FDP and anti-euro party AfD are on 4% and 3% respectively meaning they would not win seats in the Bundestag.
Welt ZDF poll
EUobserver reports that MEPs on the International Trade Committee firmly backed the opening up of the public procurement and financial services sectors in EU-US free trade talks. An amendment calling for cultural and audiovisual services to be excluded from talks was carried by 14 votes to 11.
Open Europe research: Trading Places EUobserver
EU Monetary Affairs Commissioner Olli Rehn said eurozone governments will cut structural budget deficits by 0.75 % in 2013, compared with 1.5 %last year, the Irish Independent reports. The same calculation shows the US delivering twice as much austerity as Europe in 2013, he said. Meanwhile, the Spanish government will unveil a new reform plan today, in a bid to convince the European Commission to give Spain more time to bring its deficit below 3% of GDP.
Irish Independent El País El Mundo Expansión El Economista Telegraph BBC Times
The Economists Charlemagne argues that EU treaty change is back on the table, thanks to Germany and Britain. Meanwhile, Simon Jenkins writes in the Guardian that the EU has lost the support of two thirds of its citizens, yet its leaders won't wake up. It's time for a sceptics' vision of Europe.
Open Europe blog Economist: Charlemagne Guardian: Jenkins Independent: Dejevsky
The number of jobseekers in France rose to 3,224,600 in March, exceeding the previous peak set in January 1997.
BBC Le Monde Le Figaro La Tribune WSJ FT Guardian Economist: Leader FAZ Sueddeutsche Welt
A new OECD study has found that on average, German male pensioners receive a lower pension relative to their earnings (58%) compared to Greeks (110%), Spaniards (84%) and Italians (76%).
FAZ
The WSJ notes that the two parties leading the polls ahead of tomorrows Icelandic elections both favour putting the countrys EU accession negotiations on hold.
WSJ
Bron: politics.be
Meanwhile, in an unusually forthright comment on central bank policy, German Chancellor Angela Merkel yesterday said that "the ECB is in a difficult position. For Germany it would actually have to raise rates slightly at the moment, but for other countries it would have to do even more for more liquidity to be made available". Open Europes Nina Schick is quoted in the Telegraph as saying that "while the inherent problems with the eurozone once-size-fits-all monetary policy is nothing new, theres a growing realisation within Germany on just how difficult it will be to pull this off in practice".
FT Bundesbank OMT opinion Handelsblatt WSJ FT Telegraph Telegraph: Warner FAZ FAZ 2 FAZ: Steltzner
Swedish daily Svenska Dagbladet has a feature by its foreign editor Therese Larsson looking at the UKs debate about the EU. The paper quotes Open Europes Director Mats Persson discussing the different options for the UK inside and outside of the EU.
Open Europe research: Trading places SvD
French business magazine LAgefi credits Open Europe for publishing on its blog the exclusive leaked memo highlighting the eleven participating countries major concerns about the European Commissions proposal for a financial transaction tax.
Open Europe blog LAgefi
Silvio Berlusconi has said this morning he sees no real problems regarding the formation of the new Italian government, which is to be led by Prime Minister designate Enrico Letta. Berlusconi also told Corriere della Sera yesterday, one may consider telling the EU that, with the economy in recession, the fiscal pact and the 3% deficit-to-GDP limit arent sustainable.
Repubblica La Stampa Corriere della Sera Corriere della Sera: Berlusconi FT: Leader Economist: Leader Economist
New German anti-euro party reaches 10,000 members in first seven weeks of existence;
New ZDF poll puts CDU/CSU on 40%
The new German anti-euro party Alternative für Deutschland (AfD) has reached 10,000 members seven weeks after it was launched, reports Die Welt. The paper also says that AfD head Bernd Lucke contacted Bernd Schlömer, head of the Pirate party, to propose an alliance critical of the euro and eurozone bailouts last year. Schlömer says that he could not work with AfD as they are too conservative and narrow-minded.
Separately, a new ZDF poll on the upcoming German elections puts Angela Merkels CDU/CSU on 40%, the SPD on 28%, the Greens on 14% and Die Linke on 6%. Merkels junior coalition partner the FDP and anti-euro party AfD are on 4% and 3% respectively meaning they would not win seats in the Bundestag.
Welt ZDF poll
EUobserver reports that MEPs on the International Trade Committee firmly backed the opening up of the public procurement and financial services sectors in EU-US free trade talks. An amendment calling for cultural and audiovisual services to be excluded from talks was carried by 14 votes to 11.
Open Europe research: Trading Places EUobserver
EU Monetary Affairs Commissioner Olli Rehn said eurozone governments will cut structural budget deficits by 0.75 % in 2013, compared with 1.5 %last year, the Irish Independent reports. The same calculation shows the US delivering twice as much austerity as Europe in 2013, he said. Meanwhile, the Spanish government will unveil a new reform plan today, in a bid to convince the European Commission to give Spain more time to bring its deficit below 3% of GDP.
Irish Independent El País El Mundo Expansión El Economista Telegraph BBC Times
The Economists Charlemagne argues that EU treaty change is back on the table, thanks to Germany and Britain. Meanwhile, Simon Jenkins writes in the Guardian that the EU has lost the support of two thirds of its citizens, yet its leaders won't wake up. It's time for a sceptics' vision of Europe.
Open Europe blog Economist: Charlemagne Guardian: Jenkins Independent: Dejevsky
The number of jobseekers in France rose to 3,224,600 in March, exceeding the previous peak set in January 1997.
BBC Le Monde Le Figaro La Tribune WSJ FT Guardian Economist: Leader FAZ Sueddeutsche Welt
A new OECD study has found that on average, German male pensioners receive a lower pension relative to their earnings (58%) compared to Greeks (110%), Spaniards (84%) and Italians (76%).
FAZ
The WSJ notes that the two parties leading the polls ahead of tomorrows Icelandic elections both favour putting the countrys EU accession negotiations on hold.
WSJ
Bron: politics.be