According to the European Commission both countries missed the deadline to correct their deficits. Spain was not able to meet the target of 4.2% of GDP set by the Commission – instead Spain`s deficit reached 5.1%. Portugal was required to cut its budget deficit to 2.5%, but reached a deficit of 4.4%. On Tuesday (July 12) European finance ministers will decide whether to back the move to fine Spain and Portugal. Should the recommendation by the Commission be approved, the two euro area countries could be hit with fines as well as a partial suspension of funding commitments.
commitments from Germany. Bert Van Roosebeke, financial market regulation expert with Freiburg-based think tank Center for European Policy, said the court had set a high hurdle for Germany to pull out of a future capital increase. For this to happen, he said, "the constitutional court would need to see an impairment of the parliament's budget autonomy to a very, very large extent." ...read more [...] Germany's highest court Tuesday dismissed the last legal challenge to the euro zone's permanent bailout mechanism, saying it didn't infringe on the German parliament's fiscal powers. ... The court
German Finance Minister Wolfgang Schaeuble at an event in Berlin marking the 10th anniversary of the cep strictly rejected the idea of introducing a common deposit guarantee scheme on the European level right now. “On this I’m quite stubborn,” the minister said. Schaeuble acknowledged that Germany could be outvoted by the other member states on this point. „But they will not do this,” he reckoned. See also our cepInput on the matter.
Russian President Vladimir Putin said on Wednesday at a joint press conference with Greek Prime Minister Alexis Tsipras in Moscow that Greece could become “a major transit country for the whole of the south of Europe and not only the south but maybe for central Europe.” If Greece joins Russia’s new Turkish Stream pipeline project “it will get good money from transit, we are talking about hundreds of millions of euros every year just for transit, just like that,” Putin said. cep energy expert Moritz Bonn, however, notes that the Turkish Stream pipeline needs to meet the requirements of the EU
The EU Commission considers introducing a permanent external border control force that could be deployed even without the respective EU member state’s consent, the Financial Times and The Wall Street Journal reported. According to a story by Le Soir, the EU Commission will present the plan on Tuesday. European Council President Donald Tusk said recently in an interview with the Guardian and five other European newspapers that “this wave of migrants is too big not to stop them.” See also our cepInput on the empirical and legal aspects of the refugee crisis.
EU Commission officials are exploring legal scenarios in which they could undertake EU reforms without direct input from the European Parliament, Politico cited sources. According to the news item, the Commission wants to move the EU reform talks with Britian forward more quickly because it is worried that the refugee crisis is worsening the chances of a British In vote. British Prime Minister David Cameron has said he would present his EU reform demands in a letter to European Council President Donald Tusk in early November. The Sun reported recently that Cameron was told by senior ministers
force and, thus, its credibility. The Pact will be decreasingly less able to assure the credit sustainability of EU member states. And one should not believe, that capital markets could be fooled by the [...] entails next to the establishment of of the EFSI an “investment advisory hub” at the European Investment Bank (EIB). The cep argues in a Policy Contribution that policy makers should earmark eight [...] Poland’s finance minister Mateusz Szczurek warned on Tuesday that the EU’s new European Fund for Strategic Investments (EFSI) is underfunded. He called on EU member states to support the new growth
Jean-Claude Juncker said Thursday that regarding Poland’s disputed constitutional and media shake-up there is little prospect of invoking article 7 of the EU treaty (suspension of Council voting rights for egregious violations of EU norms), the EU Observer reported. “Now we are in discussions with Poland and I don't want to speculate about further consequences, which could be entailed by the [...] Hungarian Prime Minister Viktor Orban on Friday said his country would counter any possible EU sanctions against Poland, Reuters reported. “The European Union should not think about applying any sort
A YouGov survey for The Times newspaper, taken in the two days after British Prime Minister David Cameron set out a proposed EU reform deal, showed 45 percent of Britons would vote to leave the EU compared with the 36 percent who want to remain, Reuters reported. European Council President Donald Tusk had published the draft terms for a new EU membership deal for Britain on Tuesday. The YouGov survey found that just 22 percent of voters agree that the deal is a good one, while 56 percent think the proposed changes to Britain's EU membership terms do not go far enough, Newsweek reported. Cameron said
Negotiators from the European Commission, ECB, IMF and ESM began official talks over the terms of a third, probably three-year aid program for Greece, totaling up to 86 billion euros. "Already now, it seems that the negotiations will be difficult and that they could last longer than expected. It is also possible that they will fail“, says cep economist Matthias Kullas. On 20 August 2015 Greek sovereign bonds of 3,2 billion euros held by the European Central Bank fall due. In September, the Greek government has to repay 1,5 billion euros to the International Monetary Fund (IMF).