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This time around, there was no question of a last-ditch summit. Nonetheless, the 30 January European Council meeting will have far reaching consequences. Twenty five member states – in other words the EU without the UK and the Czech Republic, which refused to be involved – adopted the fiscal and budgetary pact that Germany, seconded by France, wanted to impose.  Once twelve national parliaments have approved the text, which is slated to be signed in March, participating countries will no longer have the right to declare a spending deficit of more than 0.5% of GDP, and will be subject to automatic sanctions if this figure exceeds a ceiling of 3%. So from now on the economic policy of virtually all of Europe’s member states will be confined to a strict and immutable European framework. This should have been a logical consequence of the Maastricht Treaty and the introduction of the single currency, but it was a challenge that the European leaders of the time were reluctant to face. Under pressure from the crisis, today’s leaders have moved a step further towards a federal Europe, or – from another perspective – they have abandoned even more national sovereignty. The new order will thus be characterised by Merkelian discipline, but that does not mean an automatic end to the eurozone crisis. At a time when Athens, its private creditors and the troika are continuing to blame each other for the persistence of the threat of Greek default, and demanding additional efforts from each other to resolve it, the discovery of a new €15bn black hole in Greece’s books is not likely to facilitate discussions. Nor is the unofficial German plan to appoint a budget commissar for Greece. And this situation may be further compounded by the ratings agencies, and in particular Standard & Poor’s, which will probably not be prepared to politely wait for the ratification of the pact before announcing further eurozone downgrades. Finally, the manner in which the pact was adopted has left a sour atmosphere, which could herald further difficulties in the future. No one can be happy to see London and Prague shy away from the proposal, even if internal politics played an important part in those decisions. A Europe without the British would certainly be a much weaker world power, and Central Europe’s need for a solid anchor in Europe has never been greater: Hungary is increasingly in breach of community standards, while Slovakia is being rocked by a corruption scandal which may have unpredictable consequences. Meanwhile, Romania is perhaps only beginning to revolt against austerity. In Ireland, arrangements to ensure that the pact can be adopted without a referendum could backfire and undermine the bailout plan established in 2010. Finally, with regard to Greece, everyone – with the apparent exception of Angela Merkel and the troika negotiators – is aware that, regardless of the inadequacy of national authorities in the country, the population is close to breaking point. In the middle of all of this, Germany is continuing to design the Europe it wants to see, especially now that it has been “freed” from the constraint of partnership with a domestically weak Nicolas Sarkozy, while remaining reluctant to assume the new responsibilities thrust upon it by the crisis. The consequences of this state of affairs are not only economic, but also cultural. Angry and impulsive outbursts have become increasingly common, and allusions to Germany’s Nazi and Prussian past are more and more prevalent in Europe. More insidious than economic and social ills, the emergence of this trend and the renewed rise of nationalism are cause for serious concern of a kind that cannot be allayed by a budgetary pact. (Editorial)

AP - Ukraine's government is blaming Russia for natural gas shortages in some European countries as a severe cold spell grips the region.

During the Second World War, as nations in the east and west of Europe fought against Nazi Germany, Ireland stayed neutral. This wasn't ideal for some of Ireland's soldiers, and they deserted to join the allied armies in the defeat of Hitler. Of course, they were still deserters in their home, and many were dishonourably discharged when they returned home, and suffered discrimination. Now the Irish government has voted to pardon the 5,000 troops involved, and are considering an official apology. Irish Central has a quote from Irish Minister Shatter on the issue: "Many who fought in British uniforms during that war returned to Ireland. For too many years, their contribution in preserving European and Irish democracy was ignored."

Spain and France gained fresh relief at bond auctions on Thursday, extending a rally in euro zone government debt markets since the European Central Bank flooded banks with cheap money in ...

Europe's proposed budget-discipline treaty doesn't overcome doubts about the euro zone's long-term viability and membership, and its constraints on government budgets aren't as tough as they appear at first glance.

Filed under: Europe, Government/Legal, Saab, Earnings/Financials

Way back at the beginning of Saab's struggle for life after General Motors , exotic car firm Spyker was granted a €400-million loan ($527M U.S.) from the European Investment Bank. The loan was approved after it was guaranteed by Sweden's Debt Office, and Saab's recent bankruptcy filing forced the Debt Office to back up the guarantee with a €217-million payment ($286M) to the EIB - the portion of the loan that Saab actually drew upon.

It's not exactly bad news for the government, since the government's stake in Saab Automobile Parts and Saab Automobile Tools - used to guarantee its own guarantee of the EIB loan - is understood to be worth more than €217 million.

In the next couple of weeks, bids are expected from both China's Zhejiang Youngman Lotus and Turkey's Brightwell Holdings private equity group for the purchase of Saab in its entirety. No one can predict the outcome, but it this last-ditch situation might have the best chance: the European auto supplier organization CLEPA is assisting Youngman, the numbers being hinted at would indicate sane and motivated buyers, GM's intellectual property concerns appear to have been addressed, and it's certain that the sellers would love to see a bit of sun after a long spell of gloom for the hard luck brand.

Sweden picks up tab on bankrupt Saab's EU loan originally appeared on Autoblog on Mon, 30 Jan 2012 10:59:00 EST. Please see our terms for use of feeds.

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Fidel Castro, the legendary leader of Cuban revolution praised Venezuelan leader Hugo Chavez for its world politics and organization, slammed Us and Europe while sending gratitude to all South ...

Fidel Castro, the legendary leader of Cuban revolution praised Venezuelan leader Hugo Chavez for its world politics and organization, slammed Us and Europe while sending gratitude to all South ...

Fidel Castro, the legendary leader of Cuban revolution praised Venezuelan leader Hugo Chavez for its world politics and organization, slammed Us and Europe while sending gratitude to all South ...

In recent days, history has tugged at national debates across Europe, raising a question: what risks do politicians court by evoking the chimera of the past to score points in the present?

European leaders bid to close a chapter in the debt crisis Monday with a pact on balanced budgets, but the eurozone Achilles heel that is Greece threatens to distract them once again.

Heads of state and government from the 27 European Union states gather from 3:00 pm (1400 GMT) in Brussels, with Belgium on strike against further spending cuts envisaged after yet another credit rating downgrade.

Iran’s parliament drafted legislation calling for the government to halt oil exports to Europe until the European Union cancels its planned ban on the country’s crude, Fars news agency reported, citing a lawmaker.

The Iranian government may ban imports of all products from Europe as an answer for the European Union which voted against oil imports this week, Iranian Press TV channel reported on Saturday.

The Iranian government may ban imports of all products from Europe as an answer for the European Union which voted against oil imports this week, Iranian Press TV channel reported on Saturday.

Belgian Pensions Minister Vincent Van Quickenborne has called for the European Commission to be turned into a real European Government that takes its power from a majority in the...

Trade unions  have called an anti-austerity protest across the European Union on February 29, eve of an EU summit. "The slogan will be 'Enough is enough!' Austerity measures are not the only response to the crisis," said Bernadette Segol, secretary-general of the European Trade Union Confederation (ETUC). She said the aim of the day-long protest was to call on EU leaders to make employment their top priority. Heads of state and government are to gather in Brussels on March 1 and 2 to agree a so-called fiscal compact aimed at tightening budgetary discipline between the eurozone nations.

Denmark backs a global financial transaction tax but fears that limiting one to Europe could hamper economic and job growth, Prime Minister Helle Thorning-Schmidt said today in comments which mirror the stand already expressed by Malta. Denmark, which currently holds the European Union presidency, is not a member of the eurozone. "The government's position is that it would be reasonable to have a global tax on financial transactions," Thorning-Schmidt told reporters. "We have no ideological opposition in principle to start (introducing a tax) in Europe, but we have to listen to those who say that such a tax risks leading to financial transactions being moved elsewhere" where the tax doesn't exist, she warned. Sweden introduced taxes on financial and currency transactions in the 1980s but quickly abolished them after trading volumes plunged. "When we consider a tax on financial transactions we have to make sure it is robust enough. And we're not convinced that the project currently on the table is just that," Thorning-Schmidt said. The Danish government is open to discussion on the subject however and...

Banks have used quiet emergency loans from the European Central Bank, which has resisted buying up government debt in its own right, to come to their governments’ rescue.

Europe's sense of doom softens in a week of easier government borrowing

The biggest chemical company in the world, BASF, is moving to the US because Europeans don’t want its genetically engineered potatoes. Just days ago, the company announced its decision to move its main laboratory for the development of genetically engineered (GE) crops to the US. BASF said the move was a business decision based on the acknowledgment of the market failure of BASF’s flagship crop, the antibiotic-resistant potato Amflora. After the enormous political and media coverage Amflora turned out to be a commercial flop! 

This is very good news for Europe. But why did BASF take this decision and what does it mean for the future of GE crops in Europe?

In its press release BASF stated it had decided to “halt the development and commercialisation of all [genetically modified] products that are targeted solely for cultivation in the European markets”. The short explanation for this move was for BASF to take advantage of the practically non-existent regulatory system for GE crops in the US, which would result in increased profits. But there is much more to it than that. It has been increasingly difficult for BASF to disregard the public opposition to GE crops. According to the latest official figures 70 percent of European citizens find GE crops ‘unnatural’ and 61 percent of them oppose the development of these crops. And let’s not forget that Greenpeace twice gathered one million signatures against GE crops and that several EU member states have banned the only two GE crops authorised for cultivation in Europe. 

BASF itself acknowledged the power of the people when it said that the opposition is not only coming from Greenpeace activists opposing the commercialisation of GE crops but also from “the majority of consumers, farmers and politicians”. This contradicts the dozens of so-called  ‘industry sources’ (often disguised as independent commentators) that often portray European farmers as desperately willing to plant GE seeds on their soil. 

Regardless of this BASF said that the move from Europe is a natural development and that it will concentrate its work on the Americas and “the growth markets in Asia”. The growth markets in Asia? What growth markets? Could BASF be referring to the ground-breaking Indian decision to put a moratorium on the approval of the Bt Brinjal (eggplant) in 2010? Or the decision of the government of Thailand to keep their rice GE-free? Or could BASF even be referring to the Chinese government’s declaration to suspend until further notice any commercialisation of GE-rice?!

Clearly not. But the masterpiece of BASF’s media spin in their press release must be their distortion of terminology. They equate ‘biotechnology’ and ‘genetic engineering’. This is wrong. No-one in Europe, and certainly not Greenpeace, is against biotechnology. If we were we would be against producing beer.  And let me say here Greenpeace is not against producing beer, nor any of the other biotechnologies that improve our lives. Greenpeace has only ever expressed very serious scientific concerns and flagged the many environmental, economic and political problems with GE crops. Greenpeace is not against ‘biotechnology’, we are against bad biotechnology like GE crops. There are several other plant biotechnologies available. Marker Assisted Selection (MAS) for instance, which is also known as Smart Breeding which is more effective, cheaper and less risky than GE.

Greenpeace supports Smart Breeding not only because it doesn’t pose the health and environmental risks of GE crops, but also because it is cheaper which makes it easier for public institutions to use it.

So where does all this leave us? BASF’s decision sends a strong signal once and hopefully for all that there is no market for GE crops in Europe. What we want to see from now on is a substantial shift in the research and development agenda of Europe. Politicians, research institutions and private foundations must acknowledge the market failure of GE crops and start investing massively in solutions-based research, firstly in agro-ecology and secondly in advanced plant breeding using modern biotechnologies like Smart Breeding. The citizens want a GE-free Europe, the farmers want it, politicians want it and Greenpeace definitely wants it. Sorry BASF, no bad potatoes here!  

Marco Contiero, EU Policy Director - Sustainable Agriculture & Genetic Engineering, Greenpeace European Unit & Lasse Bruun, Senior Campaigner - Sustainable Agriculture & Genetic Engineering, Greenpeace International

The undergraduate students took part in "Euroism 2012", a four-day international replica of the world's largest economic and political union.

The Danish prime minister has said her government's presidency of the EU will "advance Europe's potential of peace, opportunity and prosperity".

The European Union raised the stakes in a showdown with Hungary on Tuesday, with the European Commission saying it would take legal action against the Hungarian government for failing to make authoritarian new laws comply with EU legislation.

The French finance minister announced tonight that Standard & Poor's had stripped the nation of its top-notch credit rating, again throwing Europe's ability to fight off its debt crisis into doubt. Speaking on France-2 television, Finance Minister Francois Baroin confirmed that France had been lowered by one notch. That would mean a rating of AA+, the same rating the United States has had since S&P downgraded it last August. Baroin said France had received a change to its rating "like most of the eurozone" referring to the 17 European nations that use the euro currency, but there was no confirmation from S&P that any other nation had been downgraded. S&P had warned 15 European nations in December that they were at risk for a downgrade. A credit downgrade would escalate the threats to Europe's fragile financial system and raise the costs at which the affected countries - some of which are already struggling with heavy debt loads and low growth - borrow money. Borrowing costs for the French government rose earlier today, when rumours of a looming downgrade began swirling through financial markets. The yield on France's...

Government plans to receive 6 billion in European funds this year. Lucian Anghel is the new head of the Bucharest stock exchange.

In European politics, the Netherlands is exactly where it wants to be: right in the centre of the triangle formed by major powers Germany, France and the...

In European politics, the Netherlands is exactly where it wants to be: right in the centre of the triangle formed by major powers Germany, France and the...

Prime Minister Mark Rutte had a meeting in London with his British counterpart David Cameron on Monday. Mr Rutte said that, as far as European politics were...

EuropeAN INDIVIDUAL WOMEN'S CHESS CHAMPIONSHIP 2012 The Government of Turkey and the Turkish Chess Federation and Gaziantep Metropolitan Municipality have the honour to invite all the ECU member Chess Federations to participate in the European Individual, Rapid and Blitz Women's Chess Championship 2012 which will take place in Gaziantep, TA1 4rkiye ... (more)

It’s becoming a habit. A year after protests were raised over legislation strengthening government control over the media, the Hungarian government of Viktor Orbán is again stirring up controversy in Europe. What has prompted the controversy is the entry into force of the country's new constitution, which comes just as the executive is amending the statutes of the Central Bank and reforming the electoral system, and as an opposition radio station is having its broadcasting frequency taken away. As one year ago, while voices demanding sanctions against the authoritarian Viktor Orbán are growing, EU leaders have abstained from taking a stand. The Commission is “studying" the situation, and only a few MEPs are calling for a response from the European Union. However, should Hungary be punished the way Austria was punished in 2000, when Jörg Haider’s far-right party entered the government? At that time Vienna’s fourteen partners broke off all bilateral contact and withdrew their support for Austrian candidates for positions in international organisations. But these measures were lifted after nine months, without having forced Chancellor Wolfgang Schüssel to bow to the pressure. Austria’s extreme right stayed in the government until 2007. Hungary poses a thorny problem. In many ways, the system that has been established – it can only be called a package of measures to promote the power of Fidesz, Orbán's party – strikes at the values underlying European integration. The organised weakening of all the opposition forces, the cosying up to Jobbik, a far-right party that has its own militia, and the escalation of nationalism among the Hungarian minorities in other EU countries are sufficient reasons to call Budapest back into line. However, respect for values and conformity should not be confused with consensus. Several elements of Viktor Orbán’s programme can be contested, condemned and fought, but they do fall within a range of political positions to be found in all European countries. The desire to retain political control over monetary policy, for example, is not the prerogative of Fidesz, and the role of the central bank is even at the heart of the discussions on the eurozone crisis. The reference to God in the constitution, the rejection of homosexual marriage or the possibility of restricting the right to abortion are conservative positions; yet the first is found in Greece, the second in France (for example) and the third in Ireland, Malta and Poland. If Europe wishes to keep Orbán’s Hungary within the European democratic ambit, it should not mistake its target or its method. If it does, it risks being drawn into two dangerous processes. The first would be to sanction Budapest with grand speeches and then have to backpedal, as was the case with Austria, or be forced to engage in an uncertain process of exclusion. The second would be to set up a system of double standards by sanctioning Hungary for its government’s political stances, when other states are equally likely to be singled out. As reactionary as it was, Poland under the Kaczyński brothers was never ostracised by the EU. The fact that Hungary is a linguistic and cultural island in the middle of Europe reinforces the dangerous dialectic between its tendency to see itself as a besieged fortress and the miscomprehension of its neighbours, who do not grasp all the terms of its internal debates. All the more reason for Europe to be vigilant, firm on its principles, but clear and measured in its actions. (Editorial)

Italian Prime Minister Mario Monti prepared for a New Year campaign to reassure European partners that his technocrat government can boost the ailing economy, with an unexpected and apparently private visit to Brussels on Thursday.

At the film's European premiere Meryl Streep says although her personal politics differ from Margaret Thatcher's, the actress admires many of the former British Prime Minister's qualities.

Italian MPs earn an average salary of 16,000 euros (around $20,900 or Rs.11,12,000), making them the top earners among lawmakers in the European Union (EU), according to a government report.

Dec. 31 (Bloomberg) -- U.K. government bonds rose for a fourth week, with two- and 10-year yields dropping to records, as investors sought safer assets after European Central Bank loans failed to ...

European government leaders have responded too late, too slowly and insufficiently to the euro crisis, former Dutch Prime Minister Wim Kok says. When the...

The Danish government said it would strive to get Europe out of the crisis and work for unity, with a particular effort to keep Britain in the fold, as the non-euro country takes over the rotating presidency of the European Union.

Non-euro nation Denmark takes over the European Union's rotating presidency Sunday, voicing determination to solve the eurozone crisis by promoting consensus among all 27 EU members.

The Scandinavian country, one of the few in Europe with a left-leaning government, will quietly pick up the baton from Warsaw as it takes the helm of the EU for the seventh time.

No major events are planned to mark the shift until European Commission representatives arrive for a ceremony on January 11.

Filed under: Europe, Government/Legal

Ward's Auto reports the European Commission is pushing new measures that could burden automakers with stiff noise regulations for cars, buses and trucks. Under the proposed legislation, automakers would need to curb vehicle noise levels by two decibels two years after the legislation's wording is agreed upon by EC member countries. Another two decibel reduction would occur three years after the first installment. Trucks, meanwhile, would be forced to reduce noise by one decibel in the first wave of reductions and two decibels in the second wave. Officials behind the proposed rules say the change will slash road noise by 25 percent and greatly improve the health and quality of life of European citizens.

Automakers are busily lobbying for amendments to the proposal, saying they have issues with the timing, levels and legal categories contained within the noise-control measures. The European Automobile Manufacturers Association says that while the first step could be implemented immediately, the second step could take as many as six years to accomplish. Head over to Ward's to read the full report.

European automakers irked over proposed noise standards originally appeared on Autoblog on Tue, 27 Dec 2011 08:30:00 EST. Please see our terms for use of feeds.

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Santander and other European banking giants are trying to preserve their brands while dealing with government austerity and tighter rules that threaten to plunge the Continent back into recession.

Managing Director of International Monetary Fund (IMF) Christine Lagarde yesterday warned the Federal Government that Nigeria may be on the receiving end of the economic shock from Europe because of the volume of her trade all over the world.

Or: Why a mild-mannered technocrat faces life in prison.

George Osborne, David Cameron and Christian Noyer have big roles in the pantomime of eurozone politics, reveals Matthew Norman.

Britain's government insists it wants to help its European neighbours hammer out the details of a fiscal pact aimed at fixing the continent's debt crisis -- even though Prime Minister David Cameron refused to sign up to the accord.

Poles protested in Warsaw against closer European integration after the government agreed to a new EU treaty.

Britain standing outside Europe is a failure for the EU more than it is for Britain, says Jason Walsh. The British government has undoubtedly taken a […] (Blog)

Will the European crisis revive old demons? The core of the European Union, the Franco-German couple, is officially working hand in hand to salvage the euro and refound the union. Nicolas Sarkozy and Angela Merkel basically spent the week together - Monday in Paris, Wednesday in Marseille, and Thursday and Friday in Brussels. But some here in French resent the perceived alignment with Germany as a loss of sovereignty and identity.

British Deputy Prime Minister Nick Clegg opened up tensions in the coalition government Sunday, warning that the country risks becoming an international "pygmy" after vetoing a new European Union treaty.

The leader of the pro-Europe Liberal Democrats spoke out despite a poll showing public support for Conservative Prime Minister David Cameron's decision to stay out of deal aimed at solving the eurozone debt crisis.

Finance Minister Jim Flaherty says it's up to European leaders to commit their extensive resources to fix the eurozone's government debt crisis before they ask for help from countries outside the region.

A general view of heads of states and governments of European Union during a plenary session in framework of the EU summit in Brussels, Belgium, 09 December 2011.