Brussels

A few weeks ago, the EU agreed an historic overhaul of its troubled common fisheries policy, setting binding deadlines to end decades of over-fishing that have depleted stocks from the Mediterranean to the North Sea.

But just when it seemed safe to go back in the water, the European parliament’s fisheries committee threatened to take a bite out of the reform on Wednesday. By a 12 to 11 margin, the committee approved an amendment allowing the use of up to €1.6bn in EU funds to help build new fishing boats.

The subsidies fly in the face of the conventional wisdom that the EU’s 83,000-vessel fleet is already far too large, and in need of a drastic cut – some say by half – in order to allow stocks to recover.

“For anyone with a brain this is completely outrageous and very difficult to understand,” said Markus Knigge, a fisheries advisor to the Pew Charitable Trust, citing estimates that the money could result in 19,000 new boats. Read more

Predicting what Germany will do in a negotiation is fast becoming the Brussels equivalent of soothsaying. Tuesday’s tetchy banking union talks set off yet another diplomatic stampede to consult the ouija boards, throwing canes and tarot cards in order to find out what Berlin really wants.

Were the strident objections of Wolfgang Schäuble, the German finance minister, just negotiating tactics? A manifestation of German domestic politics? Or are they red lines that will require the reforms to create a single banking supervisor to be totally recast or significantly delayed? We’ve consulted the FT Brussels Blog Oracle (and a few diplomats) to draw up these two scenarios.

The Germans are digging in: no deal this year

There was genuine shock at Schäuble’s intervention. Ahead of Tuesday’s meeting of finance ministers, four EU ambassadors predicted to us that a deal — or partial agreement — was at hand. That was until Schäuble spoke. He opened with a dispute that officials thought was close to being resolved: whether small banks fall under the ECB’s supervision responsibilities. Don’t think this will pass the German parliament, he warned.

More worrying for some was his next point. Read more

Over at the socialist gathering held in a conference centre overlooking an ornate garden in the centre of Brussels, a gaggle of reporters – and a few bemused tourists – clustered around Jean-Marc Ayrault, the new French prime minister, as he arrived for the meeting.

Jean-Marc Ayrault arrives at the meeting of the Party of European Socialists (PES). Reuters

Jean-Marc Ayrault arrives at the meeting of the Party of European Socialists (PES). Reuters

 Read more

eurocoasterWelcome back to our live coverage of the eurozone crisis. By Tom Burgis and Esther Bintliff on the  newsdesk in London, with contributions from FT correspondents around the world.

All times are GMT. This post should update automatically ever few minutes, but it may take longer on mobile devices.

Europe’s leaders gather in Brussels today for another crunch summit. This time, we’re told, it’s different. Expectations are running high for a new grand bargain to restore sanity to the eurozone’s finances and chart a course out of the debt crisis. We’ll bring you all the build-up, plus:

  • The European Cental Bank’s interest rates decision and press conference from Mario Draghi, the ECB president under pressure to deploy more of the central bank’s resources to shore up the euro
  • The meeting of centre-right European leaders in Marseille, including Germany’s Angela Merkel and Nicolas Sarkozy of France, the two key players in the euro drama
  • The unveiling by the European banking authority of the individual capital needs of Europe’s banks

 Read more

There is the CIA, which orchestrates drone attacks in North Waziristan and plots to topple foreign governments, and then there is the CIAA, a shadowy organisation that seeks to influence cloned meat standards, nutrition labels and other European policies governing the continent’s food and drink industries.

In an attempt to end all confusion, the CIAA, one of Brussels’ more muscular industry trade groups, is changing its name on June 23. “It’s quite an important thing, a new name. It’s a new identity,” says Lisa McCooey, the group’s Brussels-based operative, er, communications director.

The confédération des industries agro-alimentaire del’UE was born 30 years ago, when French was the lingua franca of the European Union and the acronymous similarities with a large US government organisation based in Langley, Virginia must have gone unnoticed. Read more

UPDATE: The demonstrations are already turning nasty. Near the Belgian prime minister’s office, protesters are throwing rocks at riot police, who have opened water cannons on them.

It’s summit day (again!) in Brussels, and for Europe’s presidents and prime minsters gathering this afternoon, the unexpected collapse of the Portuguese government and the ongoing infighting over the Libyan campaign is likely to dominate deliberations behind closed doors.

But those of us without the benefit of a security detail and Belgian motorcycle outriders will have to deal with something far more onerous: thousands of Belgian demonstrators who are expected to clog Brussels’ city centre to protest European austerity measures and the failure of Belgian political leaders to form a government.

A quick morning wander through the city’s EU quarter reveals Belgian security forces armed to the teeth, complete with gas masks, body armour, riot helmets and plexiglass shields. Helicopters buzz overhead. Two Belgian army soldiers were even spotted wandering through the atrium of Justis Lipsius, the EU building where the summit is held. Read more

It will be Luxembourg that will have the final say on Brussels versus Strasbourg, now that Paris has decided to sue under Lisbon.

In other words, the fight over the seat of the European Parliament has suddenly become a full-blown EU inter-institutional brawl.

The French government on Tuesday decided to take the European Parliament to the European Court of Justice in Luxembourg after parliamentarians last week decided to tweak the terms of their regular commute between Brussels and Strasbourg. Paris claims the move violates the EU’s new Lisbon treaty, its governing constitution. Read more

As you’d expect, European Union leaders were quick to congratulate David Cameron on his appointment as British prime minister.  But for all the warm words, they will be watching his first moves on the European stage like hawks.

An important test will come next week at a meeting of EU finance ministers in Brussels.  There the UK will find itself under pressure from a majority of countries to agree to new arrangements tightening the regulation of hedge funds and private equity.  Spain, which holds the EU’s rotating presidency, is desperate to get the deal done next week, having helped out Gordon Brown’s Labour government by delaying it until the British election was out of the way.  But will the new Conservative-Liberal Democrat coalition be inclined to sign up to such an important measure so soon into its period of office? Read more

With good reason the eurozone’s political leaders have been criticised for reacting too slowly to the Greek sovereign debt crisis.  But what’s new about that?  Slowness often seems to be a defining feature of Europe’s approach to policymaking.

Consider the proposals that are in the air for the creation of a European Monetary Fund to manage Greek-style crises in the future.  There is widespread support for such a fund, ranging from the European Commission to Wolfgang Schäuble, Germany’s centre-right finance minister, and socialists in the European Parliament. Read more

At last week’s European Union summit in Brussels, most people were so focused on the Greek debt crisis that they missed an interesting development on the sidelines.  This was an informal proposal from Herman Van Rompuy, the EU’s full-time president, to convene summits of EU heads of state and government once a month.

It would be a significant departure from the way the EU conducts its affairs.  At present the EU holds four scheduled summits a year, usually in March, June, October and December.  Since the financial crisis erupted in 2007-08, there have been various emergency summits as well.  President Nicolas Sarkozy of France, who ran the EU’s rotating presidency in the second half of 2008, holds the record for calling unscheduled summits.  Apart from those dealing with the financial crisis, he also convened one in response to Russia’s war with Georgia.  Read more