Daily Archives: October 23, 2011

After a two hour overrun, the meeting of the EU 27 has broken up here in Brussels, to be followed by a pow-wow of the 17 eurozone members. This could be another late one.

One thing we know has been agreed so far: more meetings.

Instead of a single summit of eurozone leaders next Wednesday, as had been planned on Thursday afternoon, it now looks like there will be at least two – but probably three – more separate get-togethers.

The most important of those will be European Council (of 27) just before Wednesday’s eurozone summit.

This is painted as a big win for Britain and Poland, the biggest “outs” (of the eurozone) who are afraid of seeing their influence on the wider EU wane by literally not having a seat at the negotiating table for the big decisions taken by eurozone leaders. Read more

European summits are fertile ground for PR stunts, if only because of the hundreds of journalists milling around waiting for decisions to be made.

Oxfam today has distributed copies of “(Not the) Financial Times”, a 4-page edition of our paper dated November 2016 and devoted to the effects of a hypothetical tax on cross-border financial transactions, or Financial Transaction Tax, apparently agreed in 2011.

In this alternative universe, bankers will be pleased to discover that the adoption of a so-called Tobin tax has helped boost their popularity rating from near 0 per cent today to 80 per cent by 2014. Read more

France and Germany may be divided over the key issues on the agenda of today’s European Union summit. But President Nicolas Sarkozy and Chancellor Angela Merkel have found common ground in the need to hammer Italy over its heavy debt load.

The leaders of the EU’s biggest and most powerful member states called in Silvio Berlusconi, the Italian prime minister, this morning for a pre-summit tongue-lashing. The message they delivered, according to one diplomat familiar with the discussion, was that Italy must deliver “specific and convincing reform measures soon.” They communicated a similar message to Berlusconi at a gathering on Saturday evening held by the centre-right European People’s Party.

Sarkozy also expressed his displeasure with Italy’s refusal to make way for a Frenchman on the European central bank’s executive board, according to the diplomat. France is due to lose its seat when Jean-Claude Trichet steps down as ECB president at the end of the month to be replaced by Mario Draghi, the outgoing president of the Bank of Italy. Berlusconi infuriated the French this week when he declined to free up a seat on the powerful decision-making committee by refusing to name current board member Lorenzo Bini Smaghi as Draghi’s replacement. Read more

French president Nicolas Sarkozy arrives at the summit this morning.

The big European Union summit will be divided in two parts today, with all 27 EU leaders meeting in the morning before the session is narrowed to the 17 members of the eurozone in the afternoon.

The Brussels Blog has obtained a copy of the 12-page draft of the morning gathering’s communiqué, circulated to summiteers this morning, and unless things change at the meeting, it looks like there will be no final decision on the one thing the 27 had hoped to finish today – a plan to recapitalise Europe’s banks.

The draft “welcomes progress made” by EU finance ministers during their 10-hour meeting on Saturday, but says the work will not be officially signed off until another meeting on Wednesday – the first official acknowledgement that leaders from all 27 EU countries (and not just the eurozone) will have to meet again next week. Whether that meeting will be the heads of all 27 governments or just their finance ministers remains to be seen. Read more