Saturday

16th Dec 2017

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.

Thank you for reading EUobserver!

Subscribe now for a 30 day free trial.

  1. €150 per year
  2. or €15 per month
  3. Cancel anytime

EUobserver is an independent, not-for-profit news organization that publishes daily news reports, analysis, and investigations from Brussels and the EU member states. We are an indispensable news source for anyone who wants to know what is going on in the EU.

We are mainly funded by advertising and subscription revenues. As advertising revenues are falling fast, we depend on subscription revenues to support our journalism.

For group, corporate or student subscriptions, please contact us. See also our full Terms of Use.

If you already have an account click here to login.

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.

Netanyahu, Panama Papers, and Brexit This WEEK

The run-up to the Christmas break sees a packed schedule, including the EU summit on Brexit, migration and other issues, a rare visit by Israeli PM Netanyahu, and issues such as fishing quotas and the Panama Papers.

May-Juncker meeting sets the tone This WEEK

As Brexit negotiations approach the (possibly) grand finale of their first phase, the EU's attention this week is turning to the eurozone - who is the new boss and how to deepen and expand it.

Showdown EU vote on asylum looking likely for next June

Divisions on relocating asylum seekers remain entrenched following an EU summit. The east-west divide opens up the possibility of relying on a majority vote for a key asylum in June, further exacerbating disputes among opposing capitals.

News in Brief

  1. EU adopts 'track-and-trace' tobacco system
  2. Luxembourg appeals Amazon tax decision
  3. EU leaders agree to open phase 2 of Brexit talks
  4. Juncker: May made 'big efforts' on Brexit
  5. Merkel took 'tough' line on Russia at EU summit
  6. EU leaders added line supporting 'two-state' solution
  7. EU leaders agree to 20 European Universities by 2024
  8. Belgian courts end legal proceedings against Puigdemont

Stakeholders' Highlights

  1. Dialogue PlatformThe Gülen Community: Who to Believe - Politicians or Actions?" by Thomas Michel
  2. Plastics Recyclers Europe65% plastics recycling rate attainable by 2025 new study shows
  3. European Heart NetworkCommissioner Andriukaitis' Address to EHN on the Occasion of Its 25th Anniversary
  4. ACCACFOs Risk Losing Relevance If They Do Not Embrace Technology
  5. UNICEFMake the Digital World Safer for Children & Increase Access for the Most Disadvantaged
  6. European Jewish CongressWelcomes Recognition of Jerusalem as the Capital of Israel and Calls on EU States to Follow Suit
  7. Mission of China to the EUChina and EU Boost Innovation Cooperation Under Horizon 2020
  8. European Gaming & Betting AssociationJuncker’s "Political" Commission Leaves Gambling Reforms to the Court
  9. AJC Transatlantic InstituteAJC Applauds U.S. Recognition of Jerusalem as Israel’s Capital City
  10. EU2017EEEU Telecom Ministers Reached an Agreement on the 5G Roadmap
  11. European Friends of ArmeniaEU-Armenia Relations in the CEPA Era: What's Next?
  12. Mission of China to the EU16+1 Cooperation Injects New Vigour Into China-EU Ties

Latest News

  1. Catalonia, Brexit, and Uber on EU agenda This WEEK
  2. Macron and Merkel take tough line on Poland
  3. Eurozone future needs structural reforms, EU leaders told
  4. Showdown EU vote on asylum looking likely for next June
  5. EU stresses unity as it launches next phase of Brexit talks
  6. Polish PM ready for EU sanctions scrap
  7. Dutchman to lead powerful euro working group
  8. EU mulls post-Brexit balance of euro and non-eurozone states