Are the Dutch attempting to lead a mutiny on bank reform? It is hard to tell whether the objections are serious enough to unravel the deal last week on the EU rules for handling a bank crisis. But something mildly rebellious is certainly afoot. And it could end in another golden-gloves showdown between Jeroen Dijsselbloem, the Dutch finance minister, and his Swedish sparring partner Anders Borg.
At issue is the draft deal on the bank recovery and resolution directive (BRRD), which was agreed between negotiators for the European parliament and EU member states on Wednesday, brining to a close months of difficult talks. The reforms give all EU countries a rulebook at national level to handle a bank in trouble and, if necessary, bail-in creditors to help foot the bill.
The Dutch, however, are unimpressed. They think the draft agreement offers too much freedom to governments wanting bailout banks with public money, rather than impose losses on bondholders. And it looks like they have a significant number of allies. Read more
David Cameron, UK prime minister, has been loudly campaigning for a crackdown on EU migration in an effort to curb the influx of workers from poorer member states to Britain.
But on Monday, the Tory-led government tried to block key amendments to EU legislation that seeks to do exactly that: reduce the inflow of workers from central and eastern Europe to wealthier member states.The so-called “posting of workers directive” was agreed by member states in 1996 to make it easier for EU workers to carry out work outside of their home country for a limited period of time.
But a number of countries led by France, Germany and Belgium have over the years complained that the directive was being used inappropriately to undercut local labour rules in richer countries. Essentially, workers from poorer countries offered their services at below market prices without asking for any social security contributions. Read more
What has become an increasingly touchy EU-Russia trade relationship took another tit-for-tat turn on Thursday when Brussels escalated a WTO case against Moscow over vehicle recycling fees.
The EU believes a recycling fee Russia charges on imported cars is less about good environmental policy and more a way to squelch foreign competition. The fee does not apply to cars built in Russia or its closest trading partners,Kazakhstan and Belarus.
Brussels complained to the WTO about the levy in July, marking the first case against Russia since it joined the global trade body with much fanfare in 2012 – 19 years after its initial application. On Thursday, the EU asked for a panel to rule on the matter after – to little surprise – settlement talks with Moscow proved fruitless. A result could take months.
“We’ve used all the possible avenues to find with Russia a mutually acceptable solution,” said Karel De Gucht, the EU trade commissioner. “As the fee continues to severely hamper exports of a sector that is key for Europe’s economy, we are left with no choice but to ask for a WTO ruling.” Read more
During his inaugural address on Monday, US President Barack Obama committed himself to a European priority that was shoved to the background during his first term in office: Fighting climate change.
“We will respond to the threat of climate change, knowing that failure to do so would betray our children and future generations,” Obama said. “Some may still deny the overwhelming judgment of science, but none can avoid the devastating impact of raging fires, and crippling drought, and more powerful storms.”
Those words were music to the ears of many in Brussels, who had assumed – wrongly, it turns out – that the White House was poised four years ago to join the EU’s campaign to forge an ambitious global climate treaty.
The irony of Obama’s climate pivot is that it was announced on the same day when the price of carbon in the EU’s emissions trading scheme fell to an all-time low, offering a distressing reminder about the disarray in a market that is the centrepiece of Europe’s climate policy. Read more
Jailed opposition leader Yulia Tymoshenko showing what she called a bruise on her forearm
Anyone hoping that the ongoing standoff between the EU and Ukraine over the detention of one-time Orange Revolution leader Yulia Tymoshenko will end soon is likely to be disappointed. With national elections just three months away, there seems to be no interest in Kiev in releasing her during campaign season.
Kostyantyn Gryshchenko, Ukraine’s foreign minister, acknowledged to Brussels Blog that the former prime minister had become more of a problem for his government in jail than free, noting her imprisonment has made an “association agreement” with EU almost impossible to finalise. “We [see] this issue as a certain irritant which obviously is not helping to move ahead with a positive agenda with the European Union,” Gryshchenko said.
But Gryshchenko swiftly repeated the line that other senior Ukrainian officials have made about the Tymoshenko case: there was little he could do to overturn last year’s court ruling that sentenced the former prime minister to seven years in prison for abuse of office. Read more
Uma Thurman, in front of a cutout of her "Kill Bill" character "The Bride", during its 2003 premiere.
Few people pay much attention to European Union public information campaigns, except when they misfire. This seems to be happening with one particular set of ads designed to boost the public’s enthusiasm for EU enlargement.
The European Commission on Tuesday took down a video it released last week that critics claimed was veering on racism. In the clip, still visible here, the EU is cast as “The Bride”, the yellow tracksuit-donning martial artist played by Uma Thurman in Quentin Tarantino’s Kill Bill movies.
The clip features the heroine being besieged by a group of assailants which – and this is where the problems lie – are grossly stereotyped versions of India, China and Brazil. The impending threat they pose is disarmed when the EU fighter multiplies into 12 fighters who can intimidate the savages into peaceful dialogue.
Is this really offensive? Arguably, the stereotypes are used for a reason: because we see them everywhere, including in films such as Crouching Tiger, Hidden Dragon and video games. Read more
In today’s paper, fellow Brussels Blogger Stanley Pignal has a nice scoop about a letter France and Germany sent to European Union officials announcing their formal objections to including Bulgaria and Romania in the Schengen area, the visa-free travel zone that most EU members are part of.
Traian Basescu, the Romanian president, has already responded this morning by calling the letter a “discriminatory act against Romania,” and vowing to fight the move.
Because the issue could get even hotter, especially since the incoming Hungarian presidency had made Bulgarian and Romanian Schengen membership such a priority, we thought we should post the letter here, with some annotations of our own. Read more
Turkey’s bid to join the European Union is expected to make a little progress today. I stress “a little”. In most respects, the cause of Turkish membership of the EU is in worse shape than at any time since EU governments recognised Turkey as an official candidate in 2004.
The progress, minimal though it is, takes the form of an agreement by the EU and Turkey to open formal talks on food security. This is one of the 35 chapters, or policy areas, that a country must complete before it can join the EU. It means that Turkey will have opened 13 chapters in total. Of these, however, only one chapter has been closed. If this is progress, the snail is king of the race track. Read more
After spending three days in Reykjavik and the northern town of Akureyri, just below the Arctic Circle, I am starting to get the feeling that Iceland’s entry into the European Union is anything but guaranteed. I have met government ministers and officials who are eager to steer their country into the EU. But I have met a fairly wide range of private sector businessmen, teachers, students and other Icelanders who are either flatly opposed or at best non-committed.
The most passionate opposition I’ve encountered has come from representatives of the powerful fisheries industry and the less powerful but politically influential agricultural lobby. Here’s what the manager of the national dairy farmers’ association said: “If we entered the EU, our tariffs would have to go. Our home market share would drop by 25 to 50 per cent. The number of farmers would drop by 60 to 70 per cent. EU membership would deal us a tremendous blow, there’s no doubt about it.” Read more
Will Iceland really join the European Union? I have come to Reykjavik in search of answers. In one sense, it’s the right time to be here: the skies are white for almost 24 hours a day at this time of year, appearing to throw light on everything. But in another sense this promises to be a frustrating trip - Iceland itself doesn’t seem to know if it wants to be in the EU or not.
The opinion polls are not good. After a long period in which a solid majority of about 60 per cent of Icelanders supported EU membership, things have turned upside down in recent months. Support for EU entry was estimated to be as low as 28 per cent in one recent survey, whilst opposition now runs at about 60 per cent. If Iceland is serious about joining the EU, it will have to hold a referendum, so these numbers matter. Right now, however, we are a long way from a referendum – at least two years, and perhaps longer. Much can change.
Enthusiasm for the EU was high when Iceland’s banking system and currency collapsed in 2008, prompting the introduction of a drastic austerity programme conducted under the beady eye of the International Monetary Fund. But Iceland’s dispute with the UK and the Netherlands over how to repay British and Dutch savers who lost their money in Icesave, the failed online Icelandic bank, has changed public opinion. Read more