Monday

23rd Sep 2019

Agenda

This WEEK in the European Union

  • Lehman Brothers - the collapse of the investment bank in 2008 heralded the start of the crisis (Photo: sachab)

The European Commission will on Wednesday (6 June) unveil its proposal for a "banking union" designed to restore confidence in the euro.

The package is expected to include EU-level banking supervision, a eurozone-level fund for handling failed banks and a eurozone-level deposit guarantee fund.

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Greek and Spanish deposit-holders are moving hundreds of billions of euros from local banks to safe havens in case Greece returns to the drachma or Spain asks for a bail-out, with perilous implications for the single currency.

European Central Bank chief Mario Draghi endorsed the banking union in remarks to MEPs in Brussels this week.

He said national goverments have a bad track on rescues: "They underestimate the problem and then come out with a second or third or fourth assessment ... That's the worst possible way of doing things. Everybody ends up doing the right thing but at a high cost."

For his part, the new French finance minister, Pierre Moscovici, will meet EU officials in Brussels on Monday as Socialist Paris tries to take control of the crisis agenda from pro-austerity Berlin.

Apart from the euro-crisis, the other big news will be an EU-Russia summit in St Petersburg on Monday.

Iran nuclear talks and the conflicts in Syria and Afghanistan are mostly handled at bilateral or at UN-level.

In EU-level business, Brussels' Herman Van Rompuy and Jose Manuel Barroso will be looking to see what Russian leader Vladimir Putin aims to do with talks on an EU-Russia strategic treaty and with the "Partnership for Modernisation" - an EU plan to swap high-end technology for political reform.

Putin will be looking to see what the EU, his main gas and oil client, is doing to avert financial disaster. He will also explore prospects of EU visa-free travel and of softening an EU energy law designed to weaken Gazprom, his energy champion, in Europe.

The last time he met Barroso - in October 2011 - they had a public disagreement on Gazprom. But Putin's new government, which includes more liberals than old-fashioned hardmen, indicates the Partnership for Modernisation is still alive.

One thing unlikely to be mentioned is Sergei Magnitsky - a whistleblower Russian lawyer murdered in 2009.

EU diplomats see Magnitsky as an irritant. But national MPs around Europe have called for action and Italian MPs will next week vote on measures to ban Magnitsky's killers from entering the EU.

Meanwhile, EU justice ministers will on Thursday debate a commission proposal on "common rules on the temporary reintroduction of border control at internal [EU] borders in exceptional circumstances."

Ministers will also discuss migration flows and the pressure they put on member states, in particular Greece.

Also on Thursday, MEPs in the economic affairs committee will vote on new rules to make mortgage lending less risky and to curb the dominance of the big-three credit rating agencies.

EU home affairs commissioner Cecilia Malmstrom will on Monday also lay out her strategy on organised crime at the meeting of a newly-created parliament anti-mafia committee.

Spain may speed up EU 'banking union'

The US has joined ranks with EU officials exploring ways to pump eurozone money directly into Spain's troubled banks, with creation of a "banking union" now considered a matter of eurozone survival.

Europe goes to New York This WEEK

Iran and climate change likely to dominate as French president Emmanuel Macron speaks for Europe at the UN general assembly in New York this week.

Brexit and new commission in focus This WEEK

Jean-Claude Juncker will meet Boris Johnson for the first time, but no breakthrough is expected in Brexit talks. MEPs are preparing to hear from the commission-designates, while Hungary will be grilled at the EU affairs' ministers meeting.

New commission unveiled This WEEK

After weeks of consultations, Ursula von der Leyen will put forward her commission on Tuesday, as London's Brexit drama keeps rumbling on in the background in Brussels.

News in Brief

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  5. Global car industry fears no-deal Brexit shock
  6. France: de-escalation between US and Iran priority
  7. Spain demands UK 'reciprocity' on resident rights
  8. Ireland: right Brexit deal is 'not yet close'

Europe goes to New York This WEEK

Iran and climate change likely to dominate as French president Emmanuel Macron speaks for Europe at the UN general assembly in New York this week.

Column

These are the crunch issues for the 2019-2024 EU commission

These developments will largely determine who will be running the world in the coming decades and perhaps generations. If the Europeans can't find an answer over the five years, they will be toast. And we haven't even mentioned climate change.

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