'EU - Coronavirus: Difficult weeks' ahead, as variants spread across EU

EU leaders discussed how to accelerate the production and rollout of vaccines on Thursday (25 February), amid fears over more transmissible mutations triggering a new surge in cases across the bloc.

"We know that the next few weeks will continue to be difficult as far as vaccinations are concerned," said the European Council president, Charles Michel, after the video-summit.

Read more at: 'Difficult weeks' ahead, as variants spread across EU

EU: An economic, as well as a monetary, union? – by John Palmer

There is not much of a market just now for optimism about our economic, social, political or environmental future. In the wake of the Covid-19 pandemic, we face the worst economic crash in more than 100 years and potential climate-change disaster. But the outcome of the marathon Brussels summit heralds a strikingly encouraging new direction for the European Union.

The significance of the five-day European Council is not simply the sheer size of the €1.2 trillion stimulus to be given the EU economy but the unprecedented scale of the collective borrowing the union will undertake on world financial markets, to finance that recovery strategy. Of the €750 billion to be invested in post-pandemic economic recovery, an unprecedented €390 billion will be in grants, not repayable loans.

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An economic, as well as a monetary, union? – John Palmer

EU Summit: EU eyes first face-to-face summit in months to haggle over budget

EU leaders may meet for a face-to-face summit in the coming weeks to bargain over the next joint budget and a linked coronavirus recovery fund, suspending lockdown rules imposed to contain the pandemic, diplomats and officials said.

The European Union has struggled to run on video conferences since going into a gradual lockdown in March to curb the spread of coronavirus, which has ravaged the EU’s economy and thwarted regular ga

EU eyes first face-to-face summit in months to haggle over budget - Reuters

EU leadership: talks delayed once again

EU summit: Marathon leadership talks delayed again

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EU Summit: Merkel, Macron at odds over top European Commission job

EU summit: Merkel, Macron at odds over top European Commission job

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Austria: May humiliated by Salzburg ambush as she fights to save Chequers Brexit Plan in Austria: by Dan Sabbagh, Daniel Boffey and Pippa Crerar

Theresa May was left fighting to save her Chequers Brexit plan and with it her authority as prime minister after she was ambushed at the end of the Salzburg summit when EU leaders unexpectedly declared that her proposals would not work.

The prime minister was thrown on to the defensive – just over a week before the Conservative party conference – when EU leaders led by Donald Tusk and Emmanuel Macron rejected her Chequers plan as it stood, prompting hard Brexit Conservatives to demand it be abandoned.

May was also set an October deadline for a solution on the Irish border issue just hours after informing Leo Varadkar, the Irish taoiseach, in a private breakfast meeting that she felt it would be impossible to come to a compromise within such a timescale.

A clearly nervous and angry May told reporters that EU leaders were engaged in “negotiating tactics” designed to throw her off course. “I have always said these negotiations were going to be tough,” she said. “And at various stages of these negotiations, tactics would be used as part of those negotiations”.

The assault on May’s plan came shortly after a lunchtime meeting of EU leaders in the Austrian city, where they discussed the Brexit talks in May’s absence. EU council president Tusk declared that Chequers “would not work” while French president Macron said it was “not acceptable”.

A combative Macron accused British Brexiters of lying about how easy it would be to negotiate an exit from the EU on terms favourable to the UK.

“Those who explain that we can easily live without Europe, that everything is going to be alright, and that it’s going to bring a lot of money home are liars,” said Macron. “It’s even more true since they left the day after so as not to have to deal with it.”

Read more: May humiliated by Salzburg ambush as she fights to save Chequers plan | Politics | The Guardian

Ukraine: Dutch to demand limits on Ukraine deal at EU summit- by Gabriela Baczynska

Dutch Referendum on Ukraine:PM  Mark Rutte 

Dutch Prime Minister Mark Rutte will ask European Union leaders on Thursday December 16 to rule out Ukraine joining the bloc for now and to place clear limits on the rewards they offer Kiev under a landmark cooperation agreement, diplomatic sources told Reuters.

Failure to meet the Dutch demands would jeopardize the agreement, which establishes closer political ties and envisages a gradual freeing-up of trade to bind Ukraine closer to western Europe and draw it away from Russia's orbit.

Rutte is trying to free himself from a political bind after Dutch voters, concerned about the costs, rejected the so-called association agreement in a referendum in April. If his demands are met, he plans to go back to his parliament to win an endorsement that would overwrite the negative vote.

Read More: Exclusive: Dutch to demand limits on Ukraine deal at EU summit | Reuters

Brexit fears stalk currency markets ahead of EU summit - by David Oakley, Elaine Moore and Roger Blitz

"To be or not to be"

Investors are betting that sterling is heading for another big tumble as currency markets are gripped by Brexit fears.

Net short positions on the pound have increased to the highest level since the summer of 2013, according to data from the US Commodity Futures Trading Commission.High quality global journalism requires investment.

With prime minister David Cameron expected to announce the date for the vote soon, possibly at the EU summit this week, some investors are predicting a rocky ride for sterling in the currency markets in the next few months.

The pound has fallen about 8 per cent since the middle of November on a trade weighted basis, with investors citing the uncertainty surrounding the Brexit vote, which could come as early as June, as one of the main reasons for the weakness in the currency.

“We need to be prepared for a choppy market,” said James Maltin, investment director at wealth manager Rathbones. “The Brexit debate may be about to heat up. It is yet another uncertainty out there that could hit the UK markets.”

Some analysts fear a potential Brexit could spark a recession, with Nomura, the Japanese bank, warning that the pound could fall 10 per cent to 15 per cent if overseas investors prove unwilling to finance Britain’s current account deficit.

Mark Carney, governor of the Bank of England, warned in January that concerns about Britain’s exit from the EU could test “the kindness of strangers” that the country relies on to fund its hefty current account deficit with the rest of the world.

Britain has a relatively large current account deficit of 3.7 per cent of gross domestic product. The worry is that overseas investors, which hold £427bn in UK government bonds, or a quarter of the market, might start to sell, putting further pressure on the pound.

Read more: Brexit fears stalk currency markets ahead of EU summit - FT.com

EU leaders go into summit seeking a long-term strategy on Russia

As he arrived at the summit venue on Thursday, the new European Council president, Donald Tusk, said a long-term strategy to deal with Moscow was vital to maintaining stability on the EU's eastern borders.

"The situation is really dramatic and very dynamic and of course…. demands immediate reactions," said Tusk, hosting his first European Union summit since taking up the new post on December 1.

"We will not find a long-term solution for Ukraine without an adequate and consistent, both tough and responsible, strategy towards Russia," he said, referring to the military conflict between pro-Russia separatists and government forces in eastern Ukraine.

"Today we should send a strong signal on our readiness to further support Ukraine also financially as we have done politically," he added

Read more: EU leaders go into summit seeking a long-term strategy on Russia | News | DW.DE | 18.12.2014

EU: All eyes on NSA at EU summit

As German Chancellor Angela Merkel arrived at the EU summit in Brussels, her official vehicle sported a license plate with the numbers 007 - more famously known as the code name of fictional British Secret Service agent James Bond.

Whether or not the license plate was a simple coincidence, there was no denying that the newest round of spying allegations against the NSA has overshadowed the summit, which was actually meant to deal with economic issues. Merkel, whose mobile phone, according to reports, was spied on by the US National Security Agency (NSA), was not in a joking mood on Thursday (24.10.2013). "Spying among friends - that's just not done," said the Chancellor in Brussels.

"Trust must be restored," Merkel told the US government, which had assured the Chancellor that her mobile phone was not being "tapped".

Late on Thursday evening, however, the British daily The Guardian reported that it had obtained a confidential memo suggesting that the NSA had also monitored the communications of 35 other world leaders. Martin Schulz, president of the European Parliament, called on EU leaders to suspend the SWIFT agreement and the exchange of banking data with the US, a recommendation already made by the Parliament on Wednesday.

On the sidelines of the EU summit, Chancellor Merkel and French President Francois Hollande briefly met to speak about the US's spying activities. After the meeting, a relatively relaxed Merkel said that "being spied on together has brought us closer." On Monday (21.10.2013), Hollande spoke out against the espionage of millions of French citizens by the NSA.

However, in an interview with DW, Alexander Stubb, Finland's Minister for European Affairs, warned against overreacting to this latest news. Stubb said that all top politicians must realize that they could be spied upon. "I am very careful, and always aware that whatever I communicate could be made public," he said.

Questioning the idea of data exchange with the US was not the best way to react, Stubb added, saying that in the worldwide digital community it was impossible to avoid exchanging information with American companies.

Note EU-Digest: Finland's Minister for European Affairs should also acknowledge that "it takes two to tango" and the US certainly was "out of step" on this tango.

Read more: All eyes on NSA at EU summit | Europe | DW.DE | 25.10.2013

EU - Focus on growth on eve of EU summit in Bruxelles and US NSA spying on Europeans

The summer is past and European summits return. Europe's leaders gather in Brussels on Thursday with the markets becalmed and some economic statistics to celebrate. 

Even the threat - a few weeks back - of the Italian government falling scarcely ruffled the markets. The promise by the president of the European Central Bank, Mario Draghi, a year ago, to do whatever it takes to defend the euro continues to act as a shield against the bond market vigilantes. No one, it seems, is prepared to bet against the ECB.

It is true that almost on a daily basis there are reassuring signs of progress.

The Spanish economy has just edged out of recession after two years. Since 2008 its exports have grown by an impressive 14.6%. Unemployment at above 26% may have peaked. Italy is running a trade surplus and Greece this year will register a primary budget surplus excluding debt repayments. Ireland is set to exit its bailout programme in mid-December.

And yet despite all the austerity and spending cuts the level of debt, amongst the countries that use the eurozone, is still rising.

French unemployment, which was down in August, is set to rise again. Italy is struggling to bring down its labour costs without which it cannot be competitive. The Greeks are locked in argument with their lenders over a budget gap. It may need further funding. It was revealed this week that Greeks are, on average, 40% poorer than in 2008.

Even the most Panglossian of Europe's leaders recognises that the recovery is fragile and solid growth is needed so in Brussels the leaders will concentrate on supporting and expanding the digital economy and building a single digital market.

But new allegations of US eavesdropping on Germany's Chancellor Angela Merkel may also be discussed.

France's President Francois Hollande is pressing for the issue to be put on the summit agenda, following reports that millions of French calls have been monitored.

The veteran French EU Commissioner Michel Barnier told the BBC that "enough is enough", and confidence in the US had been shaken.

Mr Barnier, the commissioner for internal market and services, said Europe must not be naive but develop its own strategic digital tools, such as a "European data cloud" independent of American oversight.

The digital economy is on the official summit agenda for Thursday evening ( tonight) . 

Read more: BBC News - Focus on growth on eve of EU summit

EU prepares for eurozone 2.0

The EU has approved a roadmap for further reforms, though concrete decisions are not expected this week. The way toward a renewed eurozone has been prepared, but a key question remains: who will pay in the end? 

Over dinner, the leaders of the European Union discussed the lessons they have learned from the eurozone's debt crisis, and how they want to shape the EU in the future. A clear outcome has yet to present itself, though the presidents of the European Council, the eurozone, the EU Commission and the European Central Bank have been working on a 15-page paper outlining their plans for months.

Under the heading, "Towards a Genuine Economic and Monetary Union," European Council President Herman Van Rompuy has collected reform ideas and divided them into three phases. Van Rompuy wants to achieve a full and complete banking union and a better coordination of economic policies, and contractually oblige member states to structural reform. In the end, he expects common borrowing and repayment of public debt in the eurozone.

In addition, a "fiscal capacity" would be launched, also known as a sort of eurozone budget. All eurozone states would be obliged to contribute to this common pot, which would help them deal with economic shocks and downturns.

Olli Rehn, the EU commissioner for economic and monetary affairs, told DW in Brussels that a "monetary union 2.0," that is, a new version of the current eurozone, should be created.

Read more: EU prepares for eurozone 2.0 | Europe | DW.DE | 14.12.2012

EU summit complex issues slowly being resolved

Following the typical EU-style marathon talks, leaders agreed to complete the legal framework for a single banking supervisor in Europe by the end of this year, which is considered a crucial measure to prevent banking risks and cross-border contagion from emerging.

The leaders also reached consensus on the legal framework, but details such as the timeline and the role of non-eurozone countries within the supervisory mechanism are yet to be determined.

Member countries are, however, aware that inaction might trigger further problems of deeper economic downturn, higher unemployment rate and more capital flight.

EU-Digest

Europe pushes ahead towards ECB bank supervision

European Union leaders agreed on Friday a single supervisor will take responsibility for overseeing euro zone banks from next year.

The decision opens the way for the euro zone's rescue fund to inject capital directly into ailing banks during the course of 2013, but whether that will allow Spain to transfer some of its banking liabilities off the government's books will also not be determined until later in the year.

"There was an agreement, a good agreement, on timing and about the banks as whole," French President Francois Hollande told reporters as he arrived for the second day of the summit following 10 hours of talks on Thursday that carried on into the early hours of Friday.

"There was a willingness to progressively put in place the (oversight) mechanism."

European Council President Herman Van Rompuy said the 27 leaders agreed to adopt a legal framework by the end of this year giving the European Central Bank overall responsibility for banking supervision, with national regulators consulted.

"Once this is agreed, the single supervisory mechanism could probably be effectively operational in the course of 2013," he told a 4 a.m. news conference.

French and EU officials said all 6,000 banks in the single currency area would gradually come under ECB supervision by 2014, starting with banks receiving state aid, then large cross-border institutions, even though a statement from EU leaders did not specify a number or the specifics of a timeline.

Read more: Europe pushes ahead towards ECB bank supervision | Reuters

European Union summit - No decision yet on banking union at EU summit says German official

A top German government official on Wednesday dashed hopes of swift progress on strengthening Europe's financial sector, saying this week's summit of the bloc's 27 leaders won't make any final decisions on setting up a single banking supervisor.

Many "legal, technical and political details" for a continent-wide supervisory authority still have to be hammered out, said the official, who briefed reporters on condition of anonymity in line with government policy.

The single supervisor is part of the so-called banking union plan -- one of the key projects to bind the 17 countries that use the euro closer together. By creating closer financial and political ties, the eurozone's leaders hope to secure the future of their currency.

The European Union's executive Commission, the European Central Bank and several EU nations such as Spain and France would like to see the new system in place on Jan. 1 but Germany has hit the brakes. Chancellor Angela Merkel has repeatedly stressed that "quality must trump speed."

Read more: European Union summit

E.U. Summit: Up All Night, But Consensus Finally Reached

When it comes to confronting the crisis threatening the euro’s very existence, nothing ever seems to come easy for European Union leaders—even a mutually sought agreement. That was demonstrated Friday at the E.U. summit in Brussels, where it took all-night haggling to approve growth stimulus measures that Italy and Spain had blocked until they obtained a softening of rules on bailouts that they’re likely to eventually seek. Only in the madness of the euro crisis can taking yourself hostage become an effective bargaining tool.

Yet, despite what were described as tense and grinding negotiations, decisions announced early Friday morning appear to represent important steps towards the survival of the embattled euro zone—and in both the short- and long-term context of the crisis. “(We took) a very ambitious decision that shows once again the commitment of the member states,” European Commission President Jose Manuel Barroso told reporters. “The irreversibility of the euro… will be recognized by all.”


At least once they wake up in the afternoon. Before the sleep-deprived leaders of the 17-member euro group broke their huddle at around 5 a.m. Friday, they adopted three significant concrete measures to confront the major factors in the crisis. The first involves allowing E.U. bailout funds to be paid directly to swamped euro-zone banks, rather than funneled through national governments. The old structure—designed to hold governments accountable for E.U. taxpayer rescue money—had the consequence of increasing the already crushing debt loads recipients were struggling to simultaneously finance and reduce. The change had been a demand Spanish Prime Minister Mariano Rajoy called vital in light of Spain’s pending $125 billion bank bailout request.

Read more: E.U. Summit: Up All Night, But Consensus Finally Reached | World | TIME.com

Merkel says eurobonds 'economically wrong'

Angela Merkel

German Chancellor Angela Merkel on Wednesday brushed aside the latest push to pool European debt, arguing that it would be "economically wrong and counterproductive" to make such a move before governments have shown they can comply with budget rules.

In the run-up to another European Union summit, Merkel is facing mounting pressure to soften Germany's fierce resistance to jointly issued eurobonds or other forms of debt pooling.

Though eurobonds could reduce borrowing costs for eurozone strugglers, like Spain and Italy, they could increase them for Germany and some others.

Berlin worries about being liable for other countries' debts without being able to ensure that they push through economic reforms.

Note EU-Digest: Mrs. Merkel is absolutely right. You can't have your cake and eat it too !

 Read more: Merkel says eurobonds 'economically wrong' - World - CBC News

EU leaders search for way to keep a lid on euro crisis

The hotly-contested issue of eurobonds is likely to top the agenda at a summit of EU leaders in Brussels on Wednesday, with German Chancellor Angela Merkel maintaining her objection to them. 

The Organization for Economic Cooperation and Development did a good job explaining what's at stake at the European Union summit with Tuesday's report that said a eurozone recession is the single biggest threat to the global economy.

It will be no trifling task, then, for the 27 EU leaders gathering today, Wednesday, in Brussels to come up with ways to keep the debt crisis the bloc is facing from spiralling out of control, all while attempting to create jobs and boost the economy.

Following a European drive of austerity that was led by France and Germany over the past several months, Europe may now look toward policies that promote growth - a transition that will not likely be smooth.

One item of contention among the EU leaders is the idea of eurobonds, which would be jointly issued and could protect debt-laden countries like Spain or Italy by shielding them from high borrowing rates.

Read more: EU leaders search for way to keep a lid on euro crisis | News | DW.DE | 23.05.2012

Europe signs fiscal pact, hails Greek progress

European leaders on Friday signed a new fiscal pact aimed at strengthening budget rules across the euro zone, hailed progress by Greece toward finally receiving its second bailout and signaled a willingness to speed up the funding of the euro zone’s permanent bailout fund.

As expected, the leaders made no commitment to boosting the size of the euro zone’s firewall, but did agree to speed payments of capital into the region’s permanent rescue fund, the 500 billion euro European Stability Mechanism. The ESM will replace the temporary European Financial Stability Facility at midyear. 

“As expected, the latest EU summit proved to be a non-event, and was characterized by a rare show of harmony. With the more difficult discussions centered on foreign policy issues, such as Syria, there was little to set the pulse racing on the economic policy front,” wrote strategists at Daiwa Capital Markets. 

For more: Europe signs fiscal pact, hails Greek progress - MarketWatch

EU leaders set to endorse recommendation on Serbian candidacy for membership

European Union leaders are expected to formally grant Serbia the status of a candidate for membership in the bloc during their summit todayin recognition of its government’s efforts to round up war crimes suspects and normalize relations with Kosovo, its former province.

The move would represent a remarkable turnaround for Serbia, which spent much of the 1990s ostracized and isolated from the EU after its then-strongman Slobodan Milosevic started the wars in Croatia, Bosnia and Kosovo. When Milosevic agreed to a U.S.-brokered agreement to end the war in Bosnia in 1995, about 60,000 NATO troops — including about 30,000 Americans — were deployed to the nation to enforce the accord.

For more: EU leaders set to endorse recommendation on Serbian candidacy for membership - The Washington Post