Monthly Archives: March 2014

Barack Obama, Xi Jinping, David Cameron and 50 other world leaders are battling against the clock to protect the world from a “dirty bomb” attack by terrorists in the heart of a major financial centre.

Military officials briefing the leaders do not know exactly where the attack is going to be carried out and they have limited time to come up with a response to avoid mass destruction. Hundreds of thousands of people could die.

This might sound like the plot of a Hollywood action film.

In fact it is a “war games” scenario faced by the leaders this week when they took part in a role-playing exercise at a nuclear safety summit in The HagueRead more

Brussels bureau chief Peter Spiegel reports on the upcoming summit of EU leaders on Crimea. Politicians are expected to decide on further sanctions on Russia and how the EU could help Ukraine progress economically and politically.

FT Brussels blog’s chief writer Peter Spiegel has some scoopy tweets after having spoken to a few EU officials ahead of the summit

 Read more

David Cameron, UK prime minister, unexpectedly had nothing to say about Ukraine on Thursday as he arrived in Brussels for the meeting of EU leaders.

Ahead of the summit, the British premier is not meeting with the 12 other conservative heads of Government in the European People’s Party group but instead joins members of the smaller European Conservatives and Reformists group.

The ECR struggles to match the EPP’s star power. Apart from the UK Conservatives none of its member parties are in any EU government.Nevertheless, Mr Cameron will meet the finance ministers of Iceland and the Faro Islands at their pre-summit get together. Read more

José Manuel Barroso

Anyone expecting Jose Manuel Barroso, the European Commission president, to give any hint as to where EU summitteers might go on Russian sanctions when they gather later today, will be disappointed.

At a press conference following a pre-summit meeting with business and labour union leader to discuss Europe’s jobless recovery, Barroso would only say that “the most important thing to do” is to help create a “credible, stable, prosperous, democratic Ukraine.” Read more

Ukraine's prime minister Yatseniuk returns to Brussels Friday to sign the EU integration treaty

Just how sensitive is tonight’s summit dinner debate over the next steps for EU sanctions against Russia? According to EU diplomats, the meal will be for leaders only – no aides, no experts – and they won’t be allowed to bring in mobile phones or other electronic devices.

That’s because the next most likely step is what one senior EU diplomat termed “phase two-plus”: new names, potentially those closest to Russian President Vladimir Putin, are expected to be added to the list of 21 Russian and Crimean officials subject to EU visa bans and asset freezes.

As a result, the draft conclusions that were produced from last night’s meeting of EU ambassadors – which apparently includes those names – is not being given the normal circulation to national capitals and will only be given to leaders once they get into the room tonight. The draft produced before last night’s meeting, a leaked copy of which we’ve posted here, is the last one to get distributed more widely. Read more

It is safe to assume that there are parts of the UK Treasury already in a tremendous froth over this leaked opinion from the legal advisers to EU finance ministers.

Remember the only thing that would make George Osborne, the UK chancellor, hate the Financial Transaction Tax idea more than he already does would be its extension to currency exchange transactions. Even the European Commission didn’t go that far.

For that reason this opinion from the EU Council legal service will cause a stir, at least in Brussels. It contradicts the Commission’s own legal service (they are making a habit of this on the FTT) and says that there is no law in principle preventing a joint levy on foreign exchange. This effectively reopens a debate that makes London very nervous. Read more

Campaign posers for Sunday's independance referendum in Simferopol's Lenin square

Monday’s meeting of EU foreign ministers is shaping up as one for the history books. Just as Crimean officials are scheduled to be finishing their count of the region’s independence referendum, ministers will gather in Brussels to finalise a list of Crimean and Russian officials to be targeted with travel bans and asset freezes, the most significant step yet taken by any of the western allies against the Russian incursion.

But first, diplomats must decide who exactly is on that list.

The process started in EU embassies in Moscow, who pulled together a master list that was forwarded to diplomats in Brussels. According to one diplomat involved in the discussions, the list is to be narrowed to a “small but politically significant” group of people who are “infringing Ukraine’s territorial integrity”. The diplomat put the final number “in the tens or scores”. So perhaps 20 to 40 names. Read more

Arseniy Yatseniuk, the Ukrainian prime minister, at last week's emergency EU summit

When EU diplomats meet again tomorrow in Brussels for another round of talks over Russian sanctions ahead of Monday’s foreign ministers’ meeting, one of the more peculiar points of debate will be about last week’s EU summit promise to sign the “political chapters” of their integration treaty with Ukraine.

Apparently, it may be almost impossible to do so legally – even though the current plan is to have them signed at the EU leaders’ regularly-scheduled summit next Thursday. Bit of a pickle, no?

For those not following things that closely, the EU’s “association agreement” with Ukraine is the thing that first set off the current crisis, after then-President Victor Yanukovich decided not to agree the pact – both a free trade deal and a political affiliation agreement – on the eve of a big summit designed around the signing ceremony. The months of protests that followed eventually led to Yanukovich’s downfall.

At last week’s emergency summit on the Ukraine crisis, EU leaders took many by surprise when they decided to sign the non-trade portions of the treaty – essentially the Preamble, Title I and Title II of the text, which can be read here – even though European Commission officials had previously indicated that they’d wait for a “legitimate” government in Kiev to be elected in the new May presidential vote. Read more

German finance miniser Wolfgang Schäuble with Finland's Jutta Urpilainen at Monday's eurogroup

The German finance ministry is on the brink of an extraordinary achievement. Like many power shifts within the EU, it is happily hidden behind the most fiendish jargon. But if all goes to plan, Berlin is securing something rare and coveted in Brussels: the effective power to block future EU banking regulation.

Put another way, it is quietly resetting the ground rules of the single market in financial services without the need for treaty change or a referendum or a big speech. Take note David Cameron.

How has Berlin managed it? It is all concealed in the thicket of legal arguments over establishing Europe’s €55bn bank rescue fund via an intergovernmental agreement, rather than through the EU’s normal “community method”, where majority (or at least qualified majority) rules.

To translate: at German behest, the rules for pooling banking union rescue funds are laid out in a side-deal between governments, rather than under legislation agreed between EU member states and European parliament. Such intergovernmental pacts are allowed; remember the fiscal compact? But they are not supposed to change or impact the EU’s common rulebook, outlined in the EU treaties. Read more