Open Europe : Daily Press Summary
(10/07/2012) YouGov/Sun poll: Voters would choose to stay in EU on new terms;
63% want Cameron to set out timetable for renegotiation
A new YouGov/Sun poll published today has found that 63% of voters think David Cameron should set out a timetable of what sort of powers he hopes to return from the EU. The poll also finds that 42% would vote to remain in the EU on renegotiated terms, while 34% would vote to leave altogether. In a straight in/out vote, 48% said they would vote to leave, while 31% would vote to stay in.
Andrea Leadsom, Chris Heaton-Harris and George Eustice, the Conservative MPs who founded the Fresh Start Group, write in the paper that, “The UK needs to put Europe on notice that we’re deadly serious about going in a very different direction. Fundamental renegotiation should be followed by a referendum. The British people must be given their say.”
The Sun’s leader argues, “Perhaps the PM can come up with such a good deal that staying in makes sense. Certainly, there are plenty who want to stay in. We respect their view. And if ultimately that is Britain’s decision, so be it. But we need to lay this defining issue to rest — and quickly. That is why The Sun wants a referendum.” Columnist Trevor Kavanagh argues, “We must either take power back or cut loose altogether…Far from being the wrong time, this is precisely the right time for a vote that could change the course of European history.”
Saturday’s Mail and Sun trailed tomorrow’s launch of the Fresh Start Group’s report on ‘Options for reform’, which will identify top priorities – including EU working time rules and the EU arrest warrant – for renegotiation.
Sun Sun: Leader Sun: Kavanagh Saturday’s Sun Saturday’s Mail Saturday’s Express: Leader Times: Emmott Irish Times: Barrett Fresh Start Group
German government’s economic experts: Euro in its current form is “destabilising force” in Europe
A paper from the German government’s economic advisory board has concluded that in its present form, the euro is a “destabilising force” in Europe, and that all the crisis measures based on the EFSF and ESM bailout funds have no chance of success, reports Deutsche Wirtschafts Nachrichten.
Meanwhile, speaking to ZDF television yesterday about the eurozone rescue attempts, German President Joachim Gauck warned that Chancellor Angela Merkel needed to communicate more clearly with the German people, saying that she had “an obligation to explain in great detail what this means, also in terms of fiscal policy.”
Telegraph Bild Spiegel Süddeutsche Süddeutsche: Kister FAZ: von Altenbockum DWN El País: Hardouvelis
Greek government survives first confidence vote
The Greek government this morning won a confidence vote on its new policy programme, with all 179 coalition MPs supporting the proposals, which were headed by a new privatisation push and promises of some renegotiation of the bailout package. Greek Finance Minister Yannis Stournaras said yesterday that the government would push for a delay in the fiscal consolidation plan, but that this must be preceded by regaining the trust of external creditors by pushing ahead with the privatisation plan.
A poll by Ependytis newspaper showed that 57% of Greeks support the formation of the coalition, but 48% believe elections will need to be held again in the near future. Separately, a new Enmid poll published by German magazine Focus shows that 49% of Germans are in favour of Greece leaving the euro, up from 46% last month.
Meanwhile, the FT Weekend reported that, according to Russian Finance Minister Anton Siluanov, Cyprus has requested a €5bn bailout from Russia, on top of its funding request to the EU. Siluanov said Russia had yet to make a decision on the request.
Kathimerini Kathimerini 2 Welt CityAM WSJ BBC FT Weekend 2 La Tribune
Hollande and Merkel preparing to U-turn on EU budget freeze
The Sunday Telegraph reported that French President Francois Hollande is preparing to ditch a deal on freezing the next EU budget, previously agreed by Nicolas Sarkozy, David Cameron and other EU leaders. German Chancellor Angela Merkel is also reconsidering her support for an EU budget freeze, according to the paper. Open Europe’s Research Director Stephen Booth was quoted as saying, “Although this would increase the likelihood of the negotiations becoming a political dogfight, it would also leave the UK with no excuse for not pushing harder for real reform of things like EU regional spending, which would actually reduce the budget rather than simply freezing it.”
Open Europe research Sunday Telegraph
Open Europe’s finding that taxpayers’ spending on EU quangos by has risen 33.2% since 2010 was cited by the Mail on Sunday.
Mail on Sunday Open Europe Research: EU quangos
El País: Bailout conditions to include tougher capital requirements for Spanish banks
Eurozone finance ministers are today expected to reach a political agreement over the conditions attached to the rescue package for Spanish banks, while the Memorandum of Understanding will be signed at the next meeting of eurozone finance ministers on 20 July. El País reports that, as part of the agreement, all Spanish banks will be required to increase their core Tier One capital to 9%, while the FT reports that the Spanish government has agreed to set up a single ‘bad bank’ to house all the troubled assets of Spain’s banking sector.
Meanwhile, Cinco Días reports that Spanish Prime Minister Mariano Rajoy is expected to announce new austerity measures on Wednesday. The interest rate on Spain’s ten-year bonds remains at unsustainable levels, and is over 7% this morning.
FT CityAM WSJ EUobserver FT Weekend Saturday’s Telegraph Saturday’s Guardian El País El País 2 Expansión Il Sole 24 Ore: Almunia Cinco Días El País: Schäuble Times: Emmott FT: Munchau
Plans for banking union to dominate Eurogroup as disagreements create uncertainty over proposals
The WSJ reports that, according to senior eurozone finance officials, the latest proposals for a banking union focus on creating a new agency under the ECB to supervise the largest 25 eurozone banks, with smaller ones staying under the purview of national regulators, although they would now report to the new agency. However, Christian Noyer, Governor of the Bank of France, is pushing for all banks to be supervised at the eurozone level, something which Germany and Austria reject.
The future role of the European Banking Authority also remains unclear, although the Commission is said to be working on a counter proposal where it plays the role of the central supervisor, according to Der Spiegel. In an interview with El País, German Finance Minister Wolfgang Schäuble said that “the
Speaking over the weekend, German Chancellor Angela Merkel and French President François Hollande seemed at odds over the pace and nature of eurozone integration, with Hollande saying, “
FAZ WSJ FT CityAM CityAM 2 WSJ 2 EUobserver Le Figaro Kathimerini Süddeutsche Der Spiegel Corriere della Sera: Visco
EU Internal Market Commissioner Michel Barnier will seek to include specific criminal sanctions for the manipulation of indices such as Libor within the proposed review of the EU’s Market Abuse Directive.
At tomorrow’s meeting of EU finance ministers, George Osborne will argue against MEPs’ proposal to cap bankers’ bonuses so that they cannot exceed bankers’ basic salaries.
Saturday’s Telegraph FT Weekend
Vatan reports that, of 4,860 Turks interviewed in a survey conducted by Gezici Arastirma Sirketi, only 37.7% said it is necessary that Turkey joins the EU – down from 76.35% in 2002.
La Repubblica reports that Italian Prime Minister Mario Monti has privately told his aides that he is “considering” staying in office after next year’s elections, should he be asked by the political parties to lead a national unity government.
Repubblica Libero Sky Italia Il Sole 24 Ore