Should bankers breathe a sigh of relief over the deadlock in EU talks last night on introducing a bonus cap?
The British are certainly happy to have a bit more time to achieve the improbable and turn opinion in Brussels against strict limits on bonuses that are double or triple fixed pay.
At the same time, the omens from parliament are looking no better for the City’s finest. Just look at the tone of this statement the MEPs spearheading the talks put out today:
We are ready to give the Council one more week for internal discussions. If – after ten months of negotiations – a viable compromise cannot be found on 27 February, we do not see any other possibility than to ask the plenary of the European Parliament to vote on its position.
The threat of a vote is mainly symbolic. But there is no sign of backing down. Indeed parliament is upping the ante. They are pressuring the EU member states — who are represented by the Irish presidency — to override the hold-outs to a deal. It is, in other words, a challenge to force the Brits into line or outvote them within the week. High stakes. Read more
It’s hard enough to get 27 member states to agree unanimously on a seven-year, €1,000bn budget – as anyone following the latest EU summit wrestling match can attest. But completing an EU budget deal requires one more thing: the consent of the European parliament.
Martin Schulz, the German social democrat and parliament president, reminded EU leaders and the Brussels press pack of this fact on Thursday evening. In a mildly foreboding press conference, Schulz re-stated his threat that leaders should be prepared for MEPs to block any budget proposal that strays too far from the €1,033bn proposal submitted more than a year ago by the European commission, the EU’s executive arm.
“Yes, we are prepared to make savings, but we are not prepared to have the European Union budget simply amputated,” he said.
Schulz declined to say whether the latest €960bn proposal being considered by Herman Van Rompuy, the European council president, crossed the line from extreme weight loss to amputation. But he was clearly displeased. Read more
The big question entering Thursday’s summit is whether Herman Van Rompuy, the European council president, can find the right balance between the UK’s demands for an austere long-term budget and France and Italy’s calls for a more robust one. The more Van Rompuy stretches toward the Brits and fellow budget hawks by reducing his proposal, the more those on the other side of the debate pull back. Eventually, the whole thing could snap.
But on the eve of the big meeting, Van Rompuy may have found a clever way to give his budget more elasticity: By increasing the gap between budget commitments and payments. Read more
Ukip leader Nigel Farage at a European Parliament session in Strasbourg last year
Following prime minister David Cameron’s address on Britain’s EU future, there may not be two politicians in Europe spoiling for a fight more than the two men who are arguably the most high-profile members of the European Parliament: Nigel Farage and Guy Verhofstadt.
There’s one thing Britain’s foremost eurosceptic and Belgium’s most prominent European federalist agreed on: Within minutes of Cameron finishing his speech in London, both had blasted out e-mail responses lambasting it.
Farage, however, prefaced his criticism by saying he viewed it as the “greatest achievement to date” of his political group, the UK Independence Party, since it put Britain’s EU exit firmly on the agenda. Read more
Martin Schulz, far right, with his fellow EU presidents ahead of budget talks on Monday.
Just how bleak do things look for next week’s summit intended to reach a deal on the EU’s next €1tn seven-year budget?
Only hours after French prime minister Jean-Marc Ayrault threw cold water on the latest compromise effort, another major player in the game – Martin Schulz, the European parliament president – said he now expected the high-stakes summit to come up empty.
“I’m very sceptical about an agreement next week,” Schulz told a small group of Brussels-based reporters, arguing that the compromise put out yesterday by Herman Van Rompuy, European Council president, was significantly different from that offered by the Cypriot presidency just two weeks ago – a sign of “how deep the division is within the Council.”
Van Rompuy’s proposal (a leaked copy of which we’ve posted here) has set off another round of recriminations, helping turn a meeting this morning of EU ambassadors into a complaint-fest, diplomats said. But Schulz said he believed the biggest stumbling block remained Britain, which is the only country calling for a complete EU budget freeze. Read more
Rajoy is still angered by Spain's snubbing during Mersch's selection earlier this year.
If you thought the long, drawn-out saga of Yves Mersch’s nomination to a seat on the European Central Bank’s powerful executive board could not get any stranger, think again.
The Spanish government this morning informed Herman Van Rompuy, the European Council president, that it objected to the fast-track “written procedure” Van Rompuy had begun in order to get Mersch finally seated in the job. The procedure – which was begun after the European Parliament refused to sign off on the nomination last month – was due to end today, making it possible for Mersch to take the long-empty seat by November 15.
But the Spanish veto means Mersch now can’t go through and the appointment battle, which has dragged on for nearly ten months, will have to be taken up by the EU’s presidents and prime ministers when they summit in Brussels later this month.
The question gripping the Brussels chattering classes now is: Why? Was Madrid trying to fire a warning shot across the bow of the ECB and Berlin, which have been ratcheting up the pressure over the conditions of a long-expected Spanish rescue programme? Senior officials insist the real reason is far more prosaic. Read more
Van Rompuy this week at the UN. MEP Goulard called his letter "empty (and quite insulting)".
The ongoing saga of the European Central Bank’s empty seat on its six-member executive board appears to be, well, ongoing.
Senior members of the European Parliament’s economic affairs committee met yesterday for a brief coordinating session and decided to, yet again, postpone the confirmation hearing for Yves Mersch, the Luxembourg central banker whose quest to secure the empty seat has been the subject of intense internecine fighting for more than nine months.
To update readers, Mersch’s nomination is now being held up by the committee because they believe no woman candidate was seriously considered for the post. Herman Van Rompuy, president of the European Council, wrote to the parliament in the last week to explain leaders’ positions – but committee members found the response “very thin,” prompting the decision to put off a confirmation hearing again.
Sylvie Goulard, a French liberal MEP who is a senior member of the committee, told Brussels Blog in an e-mail she found the Van Rompuy letter “empty (and quite insulting)”. Excerpts from the letter are after the jump. Read more
Who will succeed José Manuel Barroso as president of the European commission?
That question has long been debated around the corridors and coffee bars ofBrussels. But it gained special urgency after Barroso’s state-of-the-union speech in Strasbourg last week. In it, Barroso suggested that each political party nominate their own choice for commission president and place that person atop their list for the 2014 European elections.
The idea is to generate some much-needed excitement for EU elections that tend to suffer from paltry voter turnout.
“This would be a decisive step to make the possibility of a European choice offered by these elections even clearer. I call on the political parties to commit to this step and thus to further Europeanise these elections,” Barroso said.
So that begs the question: who is generating the most buzz as the next commission president? Who has the right stuff? As a service to our readers, Brussels Blog has decided to present a list of early contenders from each of the major political families. Read more
Luxembourg's Yves Mersch, left, arriving at an ECB executive board meeting in Finland last year.
Yves Mersch’s path to a seat on the European Central Bank’s powerful six-member executive board has been rocky.
The head of the Luxembourg central bank was, at first, not even considered a leading candidate for the position, which was being vacated by a Spaniard and, Madrid assumed, would be filled by a Spaniard. But a caucus of northern European countries balked at putting another southerner on the board, so inflation hawk Mersch became their candidate.
That set off months of nasty backroom battles, where the Spanish insisted on compensation – at one point they held out for the head of the new €500bn eurozone rescue fund, which was supposed to go to German economist Klaus Regling – in exchange for acceding to Mersch. Luxembourg retaliated by holding up plans to give Spain more time to hit tough budget targets.
In the end, the northerners won out. Mersch was nominated, and Spain was left empty handed. Everyone thought the fight was over. Everyone thought too soon: this morning, the European Parliament announced it was postponing Mersch’s confirmation hearing scheduled for Monday because no women candidates were considered for the job. Read more