The European leaders agreed to create shield fund to halt the spread of Greek financial problems and to avoid undermining confidence in the single European currency. Frightened by the drop-down euro and rising yield on Portuguese and Spanish bonds, the eurozone leaders said details of the preventive mechanism would be made before the opening of financial markets on Monday. “We will defend the euro at any price,” said President of the European Commission (EC) Jose Manuel Barroso during a summit in Brussels. Europe’s inability to rein in the Greek financial crisis led to a 4.3 percent decline of the euro during the week and led the U.S. and Asia to unite in trying to prevent the global debt crisis, to push the world back into recession. It was not disclosed the size of the stabilization fund which will be completed by loans guaranteed by governments of EU member states. Details yet to be specified on the ongoing meeting. “It will be very clear signal to those who want to speculate against the euro,” said Chancellor Angela Merkel. The question of whether anti-speculation market will include restrictions on short sales and agreements for the protection of bankruptcy, Barroso responded that “some of them will be considered. He said he will not exert pressure on the independent European Central Bank (ECB) for the purchase of government bonds.
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The European Commission launched a debate on how member states to increase revenues and to fill holes in the budget due to the crisis, among the proposed ideas are new taxes on banks and emissions. According to the official journal of the Committee Member States should consider in greater detail how to obtain more revenue from taxes on the activities of banks. This can be done by imposing a new tax on activities related to risk taking. Sweden has called for called. “Tax stability”. By the Committee believe that such a fee will help to raise 13 billion euros annually, if imposed in the amount proposed by Sweden. Members should consider the taxation of bankers’ bonuses, called Release. Among the proposed ideas and coordination of efforts of the EU to impose taxes on carbon dioxide emissions. Denmark, Finland and Sweden have already imposed a tax on emissions, while Britain, Germany and the Netherlands imposed on certain issues. France recently cancel a plan to introduce such a tax, and other member countries remain skeptical on the effects of such tax.
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The European Commission President Jose Manuel Barroso has spent over 730 thousand euros for travel and entertainment expenses, says the Spanish newspaper La Vos de Galicia. “According to inside information Barroso spends 200 days a year outside Brussels but not their own aircraft. The Commission also stressed that last year there was more international than usual meetings, including that of the G20, Pittsburgh, USA. Earlier, AFP reported that the commissioners spent nearly 4 million in 2009, but have limited representation expenses between 5000 and 16 000 euro, with the exception of President Jose Manuel Barroso, which for this purpose has spent 32 457 euros. The most expensive European taxpayers, according to AFP was worth the cost of Barroso. For its work was spent in total 730 230 euro. Commission representative told AFP justified the high costs of Barroso with his frequent trips. In 2009 Barroso, who is Portuguese, was of 66 missions – 56 EU and 10 abroad – a total of 697 000 euros. Commissioner for External Relations and European Neighborhood Policy Benita Ferrero-Waldner (Austria), in turn, has spent 429 000 euro for 60 trips, including 21 from outside the EU. Representative of its costs are € 5000.
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The European Parliament will today vote on a vote of confidence in the new composition of the European Commission. Expectations are that the EP will overwhelmingly support the 27-member commission to which they will be joined by the new Bulgarian commissioner Kristalina Georgieva. The main political groups in the European Parliament had already decided to vote for “the second Commission Jose Barroso. To be approved the new committee needs a simple majority, and ERA, Socialists and Liberals have significantly more than the necessary votes for it. In this situation, few believe it important that the Greens and the far-Left intend to give a negative vote by an argument that the new commission seems to be weak and incompetent. Of the three largest parties, which will make it possible, are convinced that the already approved 26 commissioners have the necessary qualities and their President Jose Manuel Barroso – the necessary determination to push through important decisions, of course, taking into account the position of the European Parliament. Therefore expectations are significantly more votes than necessary. The mandate of the new European Commission will continue to the next European elections in 2014, and some of the most important tasks before it will be linked to economic stabilization, climate change, energy independence. If, as expected, the vote is positive, European commissioners will take the oath in Luxembourg tomorrow.
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Spain to the European Commission presented a plan to curb its budget deficit, which reached 11.4 percent of GDP last year, cited by EUobserver. And Greece to the European Commission asked the UK to shrink the deficit to maximum limit of 3 percent for the euro area. Under the Madrid will have to reduce its budget deficit to 9.8 percent of GDP this year, up 5.3 percent in 2012 and in 2013 will have a limit of 3 percent, down in the Pact for Stability and Growth of the EU. Yet last week the government approved a saving of 50 billion state spending over the next four years. Despite the measures which Spain is prepare to take the ratio between debt and GDP will continue to grow and will reach 74.3 percent in 2012, according to a European Commission forecast. However, in this respect Madrid is actually much better presented as an average for Europe last year, debt-GDP ratio was 78.2%. In Spain it was 55.2%.
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The European Commission said it started a formal investigation of the decision last year to relax the protesting farmers when Greek aid amounting to 425 million EUR. Amount styled as “compensation” was intended to be distributed by Greek organizations for insurance of agricultural production (ELGA) in 2008-2009 European Commission wants to check whether the aid is compatible with the common market. The launch of the official procedure will enable the Commission to gather all the information that must be assessed and assistance to enable interested parties to submit their views, specifying the press office of the Commission. Greece has already asked to provide explanations regarding this decision within a month. Summary of the Commission’s decision will be published in the Official Journal of the European Union.
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