Friday

21st Jul 2017

Agenda

German court and Dutch elections to shape WEEK ahead

  • The German court is seen as unlikely to reject the ESM (Photo: Al Fed)

Germany's highest court takes centre stage once more this week with a ruling on the constitutionality of the eurozone's permanent bailout fund.

The decision, due Wednesday (12 September), is generally seen as unlikely to reject the €700 billlion fund - the European Stability Mechanism - but to set conditions for its use.

Thank you for reading EUobserver!

Subscribe now and get 40% off for an annual subscription. Sale ends soon.

  1. €90 per year. Use discount code EUOBS40%
  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.

Several lawsuits have been filed against both the ESM and the German-driven fiscal discipline treaty on the grounds that they risk undermining the powers of the Bundestag.

The challenges have delayed the set-up of the fund, due to go into force in July, and underlined the political tightrope walked by German Chancellor Angela Merkel, who has responsibilities towards the eurozone as whole and her own electorate.

The same day will also see the European Commission unveil its proposals for a banking union.

It has been locked in a struggle with Germany over how far-reaching the legislation should be. While Brussels is keen to see all 6,000 of the eurozone's banks come under centralised authority so potential problems can be spotted early on, Berlin only wants big banks to be supervised in any meaningful way by a European watchdog. Experts suggest, however, that badly-run and under-funded regional and local banks are where Europe's real banking problems lie.

The proposal will be spelled out in detail by commission president Jose Manuel Barroso in his annual state of the union speech.

This year's speech has more resonance than usual with almost daily headlines about the possibility of Greece leaving the eurozone, as well as the sheer breadth of the to-do list considered needed to put the eurozone right.

Listeners will be looking for clues on how a future EU should look, with Barroso involved in a group of top EU politicians drawing up a paper on the issue.

The other big event mid-week is the Dutch election, with the Netherlands host to an increasingly bitter debate about the merits of the European Union.

Dependable budget hawks when it came to debt-ridden Greece, the worsening economic situation in Netherlands altered the political debate inside the country. The Hague itself is now under pressure to introduce measures to bring its budget deficit down to within EU rules. But many Dutch resent Brussels' new budgetary oversight powers as well as more aid being given to Greece.

With the Dutch debate seen as one likely to happen in many other member states - particularly Germany, where an election is due next year - the outcome will be closely analysed in Brussels. Prime Minister Marc Rutte's centre-right liberals (VVD) head the polls, followed by labour.

EU finance ministers will round off the week with an informal meeting in Cyprus, where once again Greece will form the backdrop to the gathering.

Eurozone finance ministers are waiting for a report, due later this month, on the country's reform progress before deciding on whether to pay out the next tranche of money to Athens - without which it cannot pay its bills. Cyprus' own request for a bailout is also expected to be discussed.

Tough talk on Europe as Dutch go to polls

In the run-up to election day in the Netherlands, there was much tough talk on Europe. But a lot of it was campaign rhetoric and polls suggest a more balanced outcome.

Trump, Ukraine and NGO sea rescues This WEEK

The US president will be back in Europe for France's Bastille Day, while the EU and Ukraine will hold a summit in Kiev, and MEPs will discuss migrant rescue operations in the Mediterranean.

EU urges UK to clarify its Brexit positions

EU and UK negotiators presented their Brexit positions to identify common grounds this week, but that was made difficult by the scarcity of UK position papers.

News in Brief

  1. Polish parliament adopts controversial justice reform
  2. GMO opt-out plan unlikely to go anywhere in 2017
  3. Slovak PM threatens to boycott inferior food
  4. France takes Google's 'right to be forgotten' to EU court
  5. Turkey accuses German companies of supporting terror
  6. Israel's Netanyahu caught calling EU 'crazy'
  7. UK does not collect enough data to expel EU nationals
  8. Polish president threatens to veto justice reform

Stakeholders' Highlights

  1. European Jewish CongressJean-Marie Le Pen Faces Trial for Oven Comments About Jewish Singer
  2. ACCAAnnounces Belt & Road Research at Shanghai Conference
  3. ECPAFood waste in the field can double without crop protection. #WithOrWithout #pesticides
  4. EU2017EEEstonia Allocates €1 Million to Alleviate Migratory Pressure From Libya in Italy
  5. Dialogue PlatformFethullah Gulen's Message on the Anniversary of the Coup Attempt in Turkey
  6. Martens CentreWeeding out Fake News: An Approach to Social Media Regulation
  7. European Jewish CongressEJC Concerned by Normalisation of Antisemitic Tropes in Hungary
  8. Counter BalanceOut for Summer Episode 1: How the EIB Sweeps a Development Fiasco Under the Rug
  9. CESICESI to Participate in Sectoral Social Dialogue Committee on Postal Services
  10. ILGA-EuropeMalta Keeps on Rocking: Marriage Equality on Its Way
  11. European Friends of ArmeniaEuFoA Director and MEPs Comment on the Recent Conflict Escalation in Nagorno-Karabakh
  12. EU2017EEEstonian Presidency Kicks off Youth Programme With Coding Summer School

Latest News

  1. Dutch coalition talks lengthiest in 40 years
  2. Polish parliament steps up showdown with EU
  3. EU urges UK to clarify its Brexit positions
  4. Law expert: direct EU powers have become too complicated
  5. Winter is here for Spitzenkandidat, but he'll survive
  6. Mafia money pollutes the EU economy
  7. Central Europe should be wary of Brexit stopping
  8. Poland's 'July coup' and what it means for the judiciary