Cameron proposes unilateral changes to rules on EU migrants access to benefits;European Commission warns UK risks becoming a nasty country, but doesnt clarify whether changes are legal under EU lawDavid Cameron has proposed a series of changes to make it harder for EU migrants coming to the UK to claim benefits. Echoing the ideas he floated last May, Mr Cameron said he would introduce a cap on benefits after six months unless an EU migrant has genuine prospects of employment and a beefed up habitual residence test to assess who has the right to get benefits which he argued is possible under current EU rules. He also proposed to introduce a minimum earning threshold, though it remains unclear exactly what that involves.
Cameron proposes unilateral changes to rules on EU migrants access to benefits;
European Commission warns UK risks becoming a nasty country, but doesnt clarify whether changes are legal under EU law
David Cameron has proposed a series of changes to make it harder for EU migrants coming to the UK to claim benefits. Echoing the ideas he floated last May, Mr Cameron said he would introduce a cap on benefits after six months unless an EU migrant has genuine prospects of employment and a beefed up habitual residence test to assess who has the right to get benefits which he argued is possible under current EU rules. He also proposed to introduce a minimum earning threshold, though it remains unclear exactly what that involves.
In addition, the Prime Minister said he wanted to change EU rules to introduce more stringent controls on countries that join the EU in future including linking EU access to the relative wealth of a country and curb the practice of sending child benefit abroad.
EU Social Affairs Commissioner László Andor said, The unilateral action, unilateral rhetoric, especially if it is happening at this time, is not really helpful because it risks presenting the UK as the kind of nasty country in the EU, and warned that changing the benefits rules unilaterally would lead the UK onto a slippery slope. However, he did not specify whether the proposed changes were legal.
Open Europe research: EU free movement FT: Cameron FT Reuters City AM Times Express Mail Mail: Crawford
Merkels CDU/CSU and SPD seal Grand Coalition agreement
Following two months of negotiations, the CDU/CSU and SPD signed off on a coalition agreement early this morning. The Europe chapter of the agreement has not changed from the draft agreement of which Open Europe was the first to provide an English translation on its blog and in yesterdays press summary.
European Parliament President Martin Schulz, part of the SPDs negotiating team, confirmed that the parties had agreed that the ESM bailout fund could be used to directly recapitalise struggling eurozone banks if other measures such as bail-ins and state guarantees are not sufficient. The deal also includes introducing a national statutory minimum wage of 8.50 per hour from 2015 a major victory for the SPD. The coalition has also committed to implementing the controversial EU Data Retention Directive, which had been blocked by the FDP.
Open Europes Nina Schick appeared on CNBC this morning discussing the coalition agreement. Open Europes blog translating the draft German coalition agreement has been cited by Gazeta Wyborcza, Forex Live and Central Banking.
Open Europe blog Handelsblatt EUobserver El País El Mundo Le Monde FAZ FAZ 2 Süddeutsche Süddeutsche 2 Süddeutsche 3 Süddeutsche: Denkler FT WSJ Euractiv Telegraph Central Banking Gazeta Wyborcza Forex Live
ECB considers launching its own version of funding for lending scheme
Süddeutsche Zeitung reports that the ECB is considering launching a new round of long term lending (LTROs), with a maturity of nine months to a year. However, these loans would reportedly follow a funding for lending principle, meaning that they would be conditional on banks using the money to provide loans to the real economy. Separately, Reuters reports that ECB Executive Board members Benoît Coeuré and Yves Mersch said yesterday that the ECB should not break the mould by assigning a risk weighting to government bonds held by banks, insisting that, while this might be helpful, it should be done at the global level. Meanwhile, the ECB yesterday failed to sterilise the full amount of its bond purchases under its Securities Markets Programme. The ECB was only able to drain 158bn of the target 185bn.
Süddeutsche Reuters Reuters 2 ECB
Berlusconi leads his party into opposition ahead of final vote on his expulsion from parliament
Silvio Berlusconi has decided to withdraw his party, recently re-named Forza Italia, from Italian Prime Minister Enrico Lettas coalition. However, the government maintains a majority in parliament thanks to the support of a new centre-right breakaway group led by Deputy Prime Minister Angelino Alfano. Meanwhile, the Italian Senate will this evening hold the final vote on Berlusconis expulsion from parliament as a result of his tax fraud conviction. Separately, the Italian government yesterday won a confidence vote on the 2014 budget.
Il Sole 24 Ore Corriere della Sera 2 La Stampa Corriere della Sera La Stampa 2 Repubblica
The Portuguese parliament yesterday approved the 2014 budget, which includes further cuts to public sector pay. Meanwhile, the Bank of Portugal warned in its semi-annual report that Portuguese banks remain fragile and could face problems if the economic recovery fails to take hold.
WSJ City AM
Following the publication of the White Paper on Scottish independence, a leader in the Mail argues, One thing is for sure. If Mr Salmond joined the EUs Schengen agreement on free movement, or pressed ahead with loosening immigration controls, there could be no question of keeping open the border between Scotland and England.
Open Europe blog Mail: Leader
Germanys former Defence Minister Karl-Theodor zu Guttenberg writes in the NYT, While high-capital flows from Germany to the periphery did facilitate financial bubbles in the years before the crisis, it is not true that todays surplus is why some eurozone countries cannot rein in their deficits. In fact, that surplus has been falling for five consecutive years.
NYT: zu Guttenberg
The Catalan Republican Left has threatened not to support Catalonias budget for next year unless a final agreement on the date of the independence referendum is reached with Catalan President Artur Mass CiU party which does not command a majority in the regional parliament.
El País El País 2
The EU and member states reached an agreement yesterday on the new rules for carbon emissions from cars. Under the deal, 95% of new cars will have to meet the emissions targets in 2020, while manufacturers which produce low-emission cars can claim extra credits which would allow them to also produce higher emitting ones. The rules have been eased due to significant pressure from Germany.
EUobserver Reuters
The European Commission is threatening to freeze crucial data-sharing agreements with the US unless Washington keeps its promise to give all EU citizens the right to sue in the US if their data is misused.
Guardian Reuters
Open Europe event: 'Your date with the future: negotiating the UK's relationship with Europe'
Open Europe invites you, on December 11 in Central London, to watch leading European politicians and experts carry out the first ever live-simulation of future negotiations over the UK-EU relationship. Negotiators include former French Europe Minister Pierre Lellouche; Andrea Leadsom MP, co-founder of the Fresh Start Project and board member of the No 10 Policy Unit; former Irish Taoiseach John Bruton; Swedens shadow Foreign Minister Urban Ahlin and Limes Chief editor Lucio Caracciolo. Spaces are limited. For more information visit our website or send an email to pawel@openeurope.org.uk
Conservative MPs set out negotiating mandate for EU reform;
Major warns Cameron against asking for the impossible
The Fresh Start Project, which is backed by around 100 Conservative MPs, yesterday launched a negotiating mandate for EU reform. The MPs argue that, among other reforms, the UK should lead efforts to give national parliaments a red card allowing them to work together to block proposed new EU laws and to scrap existing legislation. Andrea Leadsom MP, Co-founder of the initiate, told the BBC Daily Politics, This isnt about repatriation to the UK of certain powers, this is about reform of the EU under the headings of creating greater global competitiveness, more flexibility and far greater democratic responsibility.
Meanwhile, former Prime Minister John Major has warned David Cameron that he must avoid asking for the impossible as he seeks to renegotiate Britains membership of the EU. Separately, James Whartons EU referendum Bill will be discussed again in the House of Commons today.
Reuters Spectator: Leadsom Fresh Start mandate Times Guardian Telegraph BBC
The Economists Charlemagne column notes that the UK has been cultivating a liberal, free-trading northern alliance in the EU, which was pivotal in securing non-eurozone states a say in the running of the EU banking union, which means votes in the European Banking Authority will require a double-majority of euro-zone and non-euro-zone states. The paper notes this is a principle first touted by Open Europe, a London-based think-tank.
Economist: Charlemagne Open Europe research: banking union Open Europe research: financial services
EU migrants from struggling eurozone countries pushes UK net immigration upwards
Net migration into the UK rose by 9% to 182,000 in the year ending June 2013 because of falling emigration and a rise in economic migrants from Ireland, Spain, Portugal, Italy and Greece, according to the Office for National Statistics. Meanwhile, David Cameron has said it was inappropriate for Laszlo Andor, EU Commissioner for Employment, Social Affairs and Inclusion, to label Britain a nasty country following the Prime Ministers announcement that certain benefits for EU migrants should be restricted.
In comments made to Die Welt, EU Justice Commissioner Viviane Reding said, If Britain wants to leave the Single Market, then Britain should say so. The Freedom of Movement is not negotiable so long as Britain is a member of the European Union and the Single Market. Dutch magazine Elseviers Political Editor Syp Wynia writes that, on EU migration, Cameron is not standing alone. Germany, France, Austria and the Netherlands are also thinking in these terms. The BBC and Mail cite Open Europe research on how different welfare systems across the EU compare and why the UKs universalist benefits system is incompatible with EU rules on access to benefits.
Open Europe research Open Europe research 2 Open Europe blog Mail BBC Times FT Mail 2 Telegraph Telegraph 2 Welt Spiegel Elsevier: Wynia
Hungarian Central Bank Governor suggests Draghi accepts euro is too strong for many countries
The WSJ reports that Governor of the National Bank of Hungary, Gyorgy Matolcsy, yesterday said that ECB President Mario Draghi, "tells us every single time in Basel that as long as the euro is not that strong against the dollarat $1.1the Club Med countries remain competitive on the global market, but they are not any longer with a euro-dollar of $1.3. And that a $1.6 is only manageable for Germany." The euro-dollar exchange rate was at $1.36 this morning. The ECB has denied that Draghi made comments on the exchange rate.
WSJ
A Politbarometer poll for ZDF shows that 52% of Germans are satisfied with the coalition deal, while 26% view it negatively. Open Europe Berlin Director, Prof. Dr Michael Wohlgemuth, appeared on BBC Radio 4s World at One discussing the issue.
Economist: Leader FT: Leithauser Welt Welt 2 Reuters Deutschland Süddeutsche Bild
EU leaders appear to have made no progress on reviving a trade agreement with Ukraine at an EU summit in Vilnius following Ukrainians decision to break off negotiations in favour of a deal with Russia. Progress was however made on potential agreements with Georgia and Moldova.
BBC FT FT 2 WSJ Reuters EUObserver EUObserver2 Reuters Deutschland
Rating agency Standard & Poors overnight downgraded the Netherlands from AAA to AA+, citing weak growth prospects as the key factor in its decision. S&P also raised the outlook for Spanish debt to stable from negative and upgraded Cyprus debt rating.
FT WSJ Reuters Kathimerini Telegraph Süddeutsche
A new IPSOS poll puts Dutch Prime Minister Mark Ruttes VVD party with 30 seats in the lower house of the Dutch parliament, Geert Wilderss far-right PVV with 24, the D66 with 23, and the PvdA Mr Ruttes junior coalition partner with 19.
Telegraaf Il Sole 24 Ore
European banks face a 280bn capital shortfall in 2014, PricewaterhouseCoopers (PwC) has warned. In its report labelled "De-leverage take 2", it notes that this is because banks' capital reserves will face three pressures next year: the Basel III capital ratio requirements, leverage ratio requirements, and the European Central Bank's (ECB's) Comprehensive Assessment.
CNBC City AM
Discussions between the Greek government and the EU/IMF/ECB Troika on the size of Greeces funding gap in 2014 and the reforms needed in Greece are moving slowly meaning any deal is unlikely before the meeting of eurozone finance ministers on 9 December.
Kathimerini Kathimerini 2 Kathimerini 3
Unemployment in Italy remained stable at the previous record-high 12.5% in October, according to new figures from the Italian National Statistics Office ISTAT. Youth unemployment rose to 41.2%, from 40.4% in September.
Repubblica Il Sole 24 Ore
Supreme Court Judge Lord Sumption has said that the Strasbourg European Court of Human Rights had gone far beyond the rules written for it in the European Convention on Human Rights and had instead become the international flag-bearer for judge-made fundamental law.
Mail Times
The FT reports on a proposal by Michel Barnier, EU Commissioner for the Single Market, to harmonise and strengthen laws to protect trade secrets from Cybercrime and industrial espionage.
FT European Voice
Reuters reports that Britain, France and Germany want to limit an EU plan to regulate CO2 emissions from flights to domestic flights rather than all flights over EU.
Reuters
Euractiv reports that the EUs Lithuanian Presidency has proposed relaxing the EUs biofuels targets by raising this limit on biofuels that come from food crops from 5% to 7% and allowing some biofuels to count towards a separate EU target for renewable energy.
European Voice Euractiv
The Telegraph reports on a confidential European Commission negotiating document seeking to overturn a vote by MEPs to reject a ban on e-cigarettes.
Telegraph
Bron: politics.be
Cameron proposes unilateral changes to rules on EU migrants access to benefits;
European Commission warns UK risks becoming a nasty country, but doesnt clarify whether changes are legal under EU law
David Cameron has proposed a series of changes to make it harder for EU migrants coming to the UK to claim benefits. Echoing the ideas he floated last May, Mr Cameron said he would introduce a cap on benefits after six months unless an EU migrant has genuine prospects of employment and a beefed up habitual residence test to assess who has the right to get benefits which he argued is possible under current EU rules. He also proposed to introduce a minimum earning threshold, though it remains unclear exactly what that involves.
In addition, the Prime Minister said he wanted to change EU rules to introduce more stringent controls on countries that join the EU in future including linking EU access to the relative wealth of a country and curb the practice of sending child benefit abroad.
EU Social Affairs Commissioner László Andor said, The unilateral action, unilateral rhetoric, especially if it is happening at this time, is not really helpful because it risks presenting the UK as the kind of nasty country in the EU, and warned that changing the benefits rules unilaterally would lead the UK onto a slippery slope. However, he did not specify whether the proposed changes were legal.
Open Europe research: EU free movement FT: Cameron FT Reuters City AM Times Express Mail Mail: Crawford
Merkels CDU/CSU and SPD seal Grand Coalition agreement
Following two months of negotiations, the CDU/CSU and SPD signed off on a coalition agreement early this morning. The Europe chapter of the agreement has not changed from the draft agreement of which Open Europe was the first to provide an English translation on its blog and in yesterdays press summary.
European Parliament President Martin Schulz, part of the SPDs negotiating team, confirmed that the parties had agreed that the ESM bailout fund could be used to directly recapitalise struggling eurozone banks if other measures such as bail-ins and state guarantees are not sufficient. The deal also includes introducing a national statutory minimum wage of 8.50 per hour from 2015 a major victory for the SPD. The coalition has also committed to implementing the controversial EU Data Retention Directive, which had been blocked by the FDP.
Open Europes Nina Schick appeared on CNBC this morning discussing the coalition agreement. Open Europes blog translating the draft German coalition agreement has been cited by Gazeta Wyborcza, Forex Live and Central Banking.
Open Europe blog Handelsblatt EUobserver El País El Mundo Le Monde FAZ FAZ 2 Süddeutsche Süddeutsche 2 Süddeutsche 3 Süddeutsche: Denkler FT WSJ Euractiv Telegraph Central Banking Gazeta Wyborcza Forex Live
ECB considers launching its own version of funding for lending scheme
Süddeutsche Zeitung reports that the ECB is considering launching a new round of long term lending (LTROs), with a maturity of nine months to a year. However, these loans would reportedly follow a funding for lending principle, meaning that they would be conditional on banks using the money to provide loans to the real economy. Separately, Reuters reports that ECB Executive Board members Benoît Coeuré and Yves Mersch said yesterday that the ECB should not break the mould by assigning a risk weighting to government bonds held by banks, insisting that, while this might be helpful, it should be done at the global level. Meanwhile, the ECB yesterday failed to sterilise the full amount of its bond purchases under its Securities Markets Programme. The ECB was only able to drain 158bn of the target 185bn.
Süddeutsche Reuters Reuters 2 ECB
Berlusconi leads his party into opposition ahead of final vote on his expulsion from parliament
Silvio Berlusconi has decided to withdraw his party, recently re-named Forza Italia, from Italian Prime Minister Enrico Lettas coalition. However, the government maintains a majority in parliament thanks to the support of a new centre-right breakaway group led by Deputy Prime Minister Angelino Alfano. Meanwhile, the Italian Senate will this evening hold the final vote on Berlusconis expulsion from parliament as a result of his tax fraud conviction. Separately, the Italian government yesterday won a confidence vote on the 2014 budget.
Il Sole 24 Ore Corriere della Sera 2 La Stampa Corriere della Sera La Stampa 2 Repubblica
The Portuguese parliament yesterday approved the 2014 budget, which includes further cuts to public sector pay. Meanwhile, the Bank of Portugal warned in its semi-annual report that Portuguese banks remain fragile and could face problems if the economic recovery fails to take hold.
WSJ City AM
Following the publication of the White Paper on Scottish independence, a leader in the Mail argues, One thing is for sure. If Mr Salmond joined the EUs Schengen agreement on free movement, or pressed ahead with loosening immigration controls, there could be no question of keeping open the border between Scotland and England.
Open Europe blog Mail: Leader
Germanys former Defence Minister Karl-Theodor zu Guttenberg writes in the NYT, While high-capital flows from Germany to the periphery did facilitate financial bubbles in the years before the crisis, it is not true that todays surplus is why some eurozone countries cannot rein in their deficits. In fact, that surplus has been falling for five consecutive years.
NYT: zu Guttenberg
The Catalan Republican Left has threatened not to support Catalonias budget for next year unless a final agreement on the date of the independence referendum is reached with Catalan President Artur Mass CiU party which does not command a majority in the regional parliament.
El País El País 2
The EU and member states reached an agreement yesterday on the new rules for carbon emissions from cars. Under the deal, 95% of new cars will have to meet the emissions targets in 2020, while manufacturers which produce low-emission cars can claim extra credits which would allow them to also produce higher emitting ones. The rules have been eased due to significant pressure from Germany.
EUobserver Reuters
The European Commission is threatening to freeze crucial data-sharing agreements with the US unless Washington keeps its promise to give all EU citizens the right to sue in the US if their data is misused.
Guardian Reuters
Open Europe event: 'Your date with the future: negotiating the UK's relationship with Europe'
Open Europe invites you, on December 11 in Central London, to watch leading European politicians and experts carry out the first ever live-simulation of future negotiations over the UK-EU relationship. Negotiators include former French Europe Minister Pierre Lellouche; Andrea Leadsom MP, co-founder of the Fresh Start Project and board member of the No 10 Policy Unit; former Irish Taoiseach John Bruton; Swedens shadow Foreign Minister Urban Ahlin and Limes Chief editor Lucio Caracciolo. Spaces are limited. For more information visit our website or send an email to pawel@openeurope.org.uk
Conservative MPs set out negotiating mandate for EU reform;
Major warns Cameron against asking for the impossible
The Fresh Start Project, which is backed by around 100 Conservative MPs, yesterday launched a negotiating mandate for EU reform. The MPs argue that, among other reforms, the UK should lead efforts to give national parliaments a red card allowing them to work together to block proposed new EU laws and to scrap existing legislation. Andrea Leadsom MP, Co-founder of the initiate, told the BBC Daily Politics, This isnt about repatriation to the UK of certain powers, this is about reform of the EU under the headings of creating greater global competitiveness, more flexibility and far greater democratic responsibility.
Meanwhile, former Prime Minister John Major has warned David Cameron that he must avoid asking for the impossible as he seeks to renegotiate Britains membership of the EU. Separately, James Whartons EU referendum Bill will be discussed again in the House of Commons today.
Reuters Spectator: Leadsom Fresh Start mandate Times Guardian Telegraph BBC
The Economists Charlemagne column notes that the UK has been cultivating a liberal, free-trading northern alliance in the EU, which was pivotal in securing non-eurozone states a say in the running of the EU banking union, which means votes in the European Banking Authority will require a double-majority of euro-zone and non-euro-zone states. The paper notes this is a principle first touted by Open Europe, a London-based think-tank.
Economist: Charlemagne Open Europe research: banking union Open Europe research: financial services
EU migrants from struggling eurozone countries pushes UK net immigration upwards
Net migration into the UK rose by 9% to 182,000 in the year ending June 2013 because of falling emigration and a rise in economic migrants from Ireland, Spain, Portugal, Italy and Greece, according to the Office for National Statistics. Meanwhile, David Cameron has said it was inappropriate for Laszlo Andor, EU Commissioner for Employment, Social Affairs and Inclusion, to label Britain a nasty country following the Prime Ministers announcement that certain benefits for EU migrants should be restricted.
In comments made to Die Welt, EU Justice Commissioner Viviane Reding said, If Britain wants to leave the Single Market, then Britain should say so. The Freedom of Movement is not negotiable so long as Britain is a member of the European Union and the Single Market. Dutch magazine Elseviers Political Editor Syp Wynia writes that, on EU migration, Cameron is not standing alone. Germany, France, Austria and the Netherlands are also thinking in these terms. The BBC and Mail cite Open Europe research on how different welfare systems across the EU compare and why the UKs universalist benefits system is incompatible with EU rules on access to benefits.
Open Europe research Open Europe research 2 Open Europe blog Mail BBC Times FT Mail 2 Telegraph Telegraph 2 Welt Spiegel Elsevier: Wynia
Hungarian Central Bank Governor suggests Draghi accepts euro is too strong for many countries
The WSJ reports that Governor of the National Bank of Hungary, Gyorgy Matolcsy, yesterday said that ECB President Mario Draghi, "tells us every single time in Basel that as long as the euro is not that strong against the dollarat $1.1the Club Med countries remain competitive on the global market, but they are not any longer with a euro-dollar of $1.3. And that a $1.6 is only manageable for Germany." The euro-dollar exchange rate was at $1.36 this morning. The ECB has denied that Draghi made comments on the exchange rate.
WSJ
A Politbarometer poll for ZDF shows that 52% of Germans are satisfied with the coalition deal, while 26% view it negatively. Open Europe Berlin Director, Prof. Dr Michael Wohlgemuth, appeared on BBC Radio 4s World at One discussing the issue.
Economist: Leader FT: Leithauser Welt Welt 2 Reuters Deutschland Süddeutsche Bild
EU leaders appear to have made no progress on reviving a trade agreement with Ukraine at an EU summit in Vilnius following Ukrainians decision to break off negotiations in favour of a deal with Russia. Progress was however made on potential agreements with Georgia and Moldova.
BBC FT FT 2 WSJ Reuters EUObserver EUObserver2 Reuters Deutschland
Rating agency Standard & Poors overnight downgraded the Netherlands from AAA to AA+, citing weak growth prospects as the key factor in its decision. S&P also raised the outlook for Spanish debt to stable from negative and upgraded Cyprus debt rating.
FT WSJ Reuters Kathimerini Telegraph Süddeutsche
A new IPSOS poll puts Dutch Prime Minister Mark Ruttes VVD party with 30 seats in the lower house of the Dutch parliament, Geert Wilderss far-right PVV with 24, the D66 with 23, and the PvdA Mr Ruttes junior coalition partner with 19.
Telegraaf Il Sole 24 Ore
European banks face a 280bn capital shortfall in 2014, PricewaterhouseCoopers (PwC) has warned. In its report labelled "De-leverage take 2", it notes that this is because banks' capital reserves will face three pressures next year: the Basel III capital ratio requirements, leverage ratio requirements, and the European Central Bank's (ECB's) Comprehensive Assessment.
CNBC City AM
Discussions between the Greek government and the EU/IMF/ECB Troika on the size of Greeces funding gap in 2014 and the reforms needed in Greece are moving slowly meaning any deal is unlikely before the meeting of eurozone finance ministers on 9 December.
Kathimerini Kathimerini 2 Kathimerini 3
Unemployment in Italy remained stable at the previous record-high 12.5% in October, according to new figures from the Italian National Statistics Office ISTAT. Youth unemployment rose to 41.2%, from 40.4% in September.
Repubblica Il Sole 24 Ore
Supreme Court Judge Lord Sumption has said that the Strasbourg European Court of Human Rights had gone far beyond the rules written for it in the European Convention on Human Rights and had instead become the international flag-bearer for judge-made fundamental law.
Mail Times
The FT reports on a proposal by Michel Barnier, EU Commissioner for the Single Market, to harmonise and strengthen laws to protect trade secrets from Cybercrime and industrial espionage.
FT European Voice
Reuters reports that Britain, France and Germany want to limit an EU plan to regulate CO2 emissions from flights to domestic flights rather than all flights over EU.
Reuters
Euractiv reports that the EUs Lithuanian Presidency has proposed relaxing the EUs biofuels targets by raising this limit on biofuels that come from food crops from 5% to 7% and allowing some biofuels to count towards a separate EU target for renewable energy.
European Voice Euractiv
The Telegraph reports on a confidential European Commission negotiating document seeking to overturn a vote by MEPs to reject a ban on e-cigarettes.
Telegraph
Bron: politics.be