The Commission will send 35 individual requests to 20 Member States of the European Union with a request to fully implement other aspects of Community legislation to create a single market for gas and electricity, said Europe’s energy portal. Legislation in this area tends to increase the capacity and transparency of gas markets and electricity. Effective and fully functioning single European energy market will give consumers a choice between different companies supply gas and electricity, and will provide access to all suppliers, especially smaller ones and those who invest in renewable sources. It will also help the EU to recover from the economic crisis, said Monday. Countries to which the EC has decided to send applications are Austria, Belgium, Bulgaria, Czech Republic, Germany, Spain, France, Greece, Hungary, Ireland, Italy, Luxembourg, Netherlands, Poland Portugal, Romania, Slovenia, Slovakia, Sweden and UK. States have two months to respond. According to the Commission this can avoid cartelization and monopolism, which is the basic afraid of the new governments in the years of crisis.
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The stock market indexes in Asia and Pacific region continued to rush down and fell for the sixth straight session today. Since the beginning of this month, only two sessions have brought stock growth indexes in the region, May seems to be the worst for them from September 2008 onwards. Sale of shares, mainly from the banking and extractive sector MSCI Asia Pacific fell by another 1.4 percent to 111.83 points today, it pulled down to its lowest level in nine months. He has lost 13 percent to its highest point this year, scored about a month ago, cited by Bloomberg. Its loss from the beginning of this year increased to 7.2 percent after today’s session, only within the last five sessions MSCI Asia Pacific has yielded a 6.9 per cent, which is its biggest weekly decline since February last year ever. Exchange pessimism of investors increase this week after Germany introduced a ban on uncovered short sales of shares of the largest banks and insurance companies, and on speculative purchases of government bonds of 16 countries that make up the eurozone. Japan’s Nikkei 225 index slid 2.5 percent to 9 784.54 points and ranked among the losers in the region indicators. Bank of Japan announced today that it began granting loans against interest rate of 0,1% of commercial banks in Japan after leaving the base rate in the country unchanged.
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What makes markets nervous, according to managing director of Pimco Paul McKali is uncertainty about next steps on the euro and the European Union – or the end of the single currency, or movement towards fiscal federalism on the continent. McKali, who heads the trade in short-term bonds in the largest bond fund in the world hastened to clarify that it is not necessarily a breakdown of the euro area, forward CNBC. He said the crisis in Europe is a matter of confrontation between the Nordic countries, led by Germany and south, which they help. This may not be long-term solution. “It’s like a loan unemployed relative,” he explains. “I do not particularly want you to help him, but if you do, it will cause in you.” McKali believe that eventually North will be tired of pouring money into the southern countries, which could lead to structuring of the South. He added that Pimco is not currently buying U.S. government bonds since there is enough. According to Tony Kresenzi, senior vice president at Pimco, government bonds may be good for investors in insurance stocks. Chuck Lahr, manager of the new department equity investment company expects to trade variable summer. According to European stock markets currently trade at a discount of 30%, offer opportunities for investors.
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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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The CEO of the Bank of England (Bank of England) Marvin King on Tuesday proposed a radical reform of arrangements for managing the international economy, says the Telegraph. King insisted that an effective merger of the functions of the G-20, which includes 19 countries with the largest economies in the world plus the European Union with those of the International Monetary Fund (IMF). According to King, if the authorities did not establish an international body which has authority to reform the monetary system, the world may run into another crisis in a few years. He warned that paying very close attention to efforts to reform the financial sector, but in the meantime the economic imbalances that have resulted in crisis continued to worsen. Marvin King has repeatedly expressed its concern about imbalances in the global economy. They have accumulated after a period of many years, rich countries have relied on loans to pay for cheap exports from overseas. To solve this problem, he believes that politicians need to transform the institutions currently responsible for the global economy. Governor of the Bank of England believes that the G-20 can take the task to push reforms needed to induce exporters to increase their domestic consumption, a population of indebted economies like the United States and Britain to start saving more. According to him the legitimacy and authority of the G-20 will increase if the group become the Board of the IMF. Marvin King strongly criticized the IMF in recent years after the Fund has warned repeatedly about the extent of imbalances in the global economy, but their actions failed to achieve any noticeable reform in the creditors nor the debtor countries.
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European MPs want fresh funds amounting to EUR 1,5 billion to finance the European economic recovery plan and 300 million for new fund for the dairy sector. Overall, they have recovered the amount of the preliminary draft budget proposed by the European Commission a total amount the Council of Europe subsequently reduced. Members voted on the draft EU in 2010, adopting several amendments to it. So the main report on amendments to the draft budget was approved with 522 votes for, 68 against and 39 abstentions, stated in the release of the EP. The first reading of the draft budget in Parliament represents the position of THE EUROPEAN PARLIAMENT on the upcoming negotiations with the Council. The final EU budget for 2010 will be adopted at the December session in Strasbourg. Creation of a new milk fund amounting to EUR 300 million to meet the crisis in the sector was one of the main demands of the parliament during the budget negotiations 2010. Its creation was approved by 528 votes. This fund aims to support the restructuring of the dairy sector, will also include measures to support areas in a less favorable position to promote sales and to find alternative sources of income for producers.
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