Finance and Monetary Affairs in the EU

Latest news on economic and monetary affairs in the European Union.

Structural measures to improve the resilience of EU credit institutions — 29 January 2014, 14:27 CET

The European Commission has proposed new rules to stop the biggest and most complex banks from engaging in the risky activity of proprietary trading. The new rules would also give supervisors the power to require those banks to separate certain potentially risky trading activities from their deposit-taking business if the pursuit of such activities compromises financial stability. Alongside this proposal, the Commission has adopted accompanying measures aimed at increasing transparency of certain transactions in the shadow banking sector. These measures complement the overarching reforms already undertaken to strengthen the EU financial sector.

Reporting and transparency of securities financing transactions — 29 January 2014, 14:16 CET

The European Commission has proposed new rules to stop the biggest and most complex banks from engaging in the risky activity of proprietary trading. Alongside this proposal, the Commission has adopted accompanying measures aimed at increasing transparency of certain transactions in the shadow banking sector. These measures complement the overarching reforms already undertaken to strengthen the EU financial sector.

Financial Stability Board (FSB) — 29 January 2014, 14:14 CET

The Financial Stability Board (FSB) has been established to coordinate at the international level the work of national financial authorities and international standard setting bodies and to develop and promote the implementation of effective regulatory, supervisory and other financial sector policies. It brings together national authorities responsible for financial stability in significant international financial centres, international financial institutions, sector-specific international groupings of regulators and supervisors, and committees of central bank experts.

Operation Warehouse Customs Operation — 21 January 2014, 14:41 CET

Almost 45 million smuggled cigarettes, nearly 140,000 litres of diesel fuel and about 14,000 litres of vodka were seized during a major Joint Customs Operation (JCO). The Operation code-named "Warehouse" was carried-out in October 2013 by the Lithuanian Customs Service and the Lithuanian Tax Inspectorate in close cooperation with the European Anti-Fraud Office (OLAF), and with the participation of all 28 EU member states. As a result of Operation "Warehouse", a significant potential loss to the budgets of the European Union and its Member States was prevented. According to preliminary estimates, this would have amounted to about € 9 million in the form of evaded customs duties and taxes. The final results of the Operation were discussed by the participants last week at a debriefing meeting in Vilnius and were made public today across Europe.

Joint Customs Operations (JCO) — 21 January 2014, 14:40 CET

The customs authorities of EU countries as well as some non-EU countries, in cooperation with OLAF, carry out regular joint customs operations with specific checks at European level. These operations are coordinated and targeted actions of a limited duration with the aim of combating the smuggling of sensitive goods and fraud in certain risky areas and/or on identified trade routes.

Revision of Public Procurement Directives — 15 January 2014, 19:56 CET

New EU rules on public procurement and concession contracts approved by the European Parliament on 15 January 2014 are expected to ensure better quality and value for money when public authorities buy or lease works, goods or services.

New rules for risk finance — 15 January 2014, 20:48 CET

The European Commission has adopted new guidelines setting out the conditions under which Member States can grant aid to facilitate access to finance by European SMEs and companies with a medium capitalization (the so-called "midcaps"). Certain SMEs and midcaps, in particular innovative and growth-oriented SMEs in their early development stages, have difficulties to get funding, independently of the quality of their business potential. State aid can help address this funding gap, not by replacing existing funding channels but by attracting fresh money into new ventures through well-designed financial instruments and fiscal measures. These guidelines are part of the Commission's State Aid Modernisation (SAM) strategy, which aims at fostering growth in the Single Market by encouraging more effective aid measures and focusing the Commission's scrutiny on cases with the biggest impact on competition. The guidelines will enter into force on 1 July 2014.

Deal to regulate financial markets (MiFID II) — 15 January 2014, 11:57 CET

Comprehensive rules to govern financial markets were agreed informally by negotiators for Parliament and the Council of Ministers on 14 January. These rules are designed to close the loopholes in the existing legislation, ensuring that financial markets are safer as well as more efficient, investors are better protected, speculative commodity trading is curbed and high-frequency trading is regulated.

Single Euro Payments Area (SEPA) — 09 January 2014, 16:10 CET

The Single Euro Payments Area (SEPA) will allow customers to make euro payments throughout Europe as easily, securely and efficiently as they do today within their own countries. Once SEPA has been completed, there will no longer be any distinction between national and cross-border euro payments: they will all be domestic.

Structural and investment funds boost for partners' role in planning and spending — 08 January 2014, 19:53 CET

The European Commission on 7 January adopted a common set of standards to improve consultation, participation and dialogue with partners such as regional, local, urban and other public authorities, trade unions, employers, non-governmental organisations and bodies responsible for promoting social inclusion, gender equality and non-discrimination during the planning, implementation, monitoring and evaluation of projects financed by the European Structural and Investment Funds (ESIF).

Latvia 18th EU Member State to adopt the euro — 31 December 2013, 19:24 CET

Following Latvia's adoption of the euro on 1 January 2014 - the 15th anniversary of the launch of the euro in 1999 - 18 Member States and 333 million Europeans share the same currency. This is a major achievement for Latvia and for the euro area as a whole. Latvians start withdrawing euro cash and paying for their purchases in euro. This has been made possible thanks to thorough preparations ahead of the introduction of the EU's single currency.

S&P downgrades EU debt, Commission hits back — 22 December 2013, 13:21 CET

The Standard and Poor’s ratings agency downgraded the European Union’s credit-worthiness by one notch on Friday, blaming threats to cohesion including Britain’s role in curtailing budgets and holding a membership referendum.

New de minimis regulation on State aid receives lukewarm welcome from SMEs - UEAPME — 19 December 2013, 21:09 CET

UEAPME, the European craft and SME employers’ organisation, gave a lukewarm welcome to the new de minimis Regulation on State aid, adopted yesterday by the European Commission.

European Banking Authority (EBA) — 13 December 2013, 12:26 CET

The European Banking Authority (EBA) is an independent EU Authority which works to ensure effective and consistent prudential regulation and supervision across the European banking sector. Its overall objectives are to maintain financial stability in the EU and to safeguard the integrity, efficiency and orderly functioning of the banking sector. The main task of the EBA is to contribute to the creation of the European Single Rulebook in banking whose objective is to provide a single set of harmonised prudential rules for financial institutions throughout the EU. The Authority also plays an important role in promoting convergence of supervisory practices and is mandated to assess risks and vulnerabilities in the EU banking sector.

EU paves way for the bank accounts consumers actually need - BEUC — 12 December 2013, 13:59 CET

Today’s European Parliament vote will enable all European consumers to open a bank account, make account fees more transparent and comparable and help those who want to switch to another bank.

Free movement of people: five actions to benefit citizens, growth and employment in the EU — 25 November 2013, 23:23 CET

A European Commission policy paper outlines five concrete actions to strengthen the right to free movement, while helping EU Member States to reap the positive benefits it brings. The policy paper clarifies citizens' rights to free movement and access to social benefits, and addresses the concerns raised by some Member States in relation to the challenges that migration flows can represent for local authorities.

Draft budgetary plans of eurozone Member States — 15 November 2013, 15:01 CET

The 'Two Pack' establishes a common budgetary timeline for euro area Member States which requires these Member States to submit draft budgetary plans to the Commission by October 15 every year, prior to the adoption of the budget.

Autumn fiscal surveillance package — 15 November 2013, 14:34 CET

The European Commission today presented a major package of budgetary surveillance announcements, covering 13 eurozone Member States and 3 non-euro Member States, with a special focus also on the euro area as an economic entity in its own right. For the first time, the Commission has issued opinions on euro area Member States' Draft Budgetary Plans, which from this year must be submitted to the Commission by 15 October, at the same time as draft budgets are sent to national parliaments. Assessments have also been published regarding compliance with Council recommendations under the Excessive Deficit Procedure (EDP), potential breaches of the debt and deficit criteria under the Stability and Growth Pact (SGP), and on certain Member States' plans for structural reforms with a budgetary impact outlined in their Economic Partnership Programmes (EPP).

Alert Mechanism Report on macroeconomic imbalances in EU Member States — 13 November 2013, 19:57 CET

The 2014 Alert Mechanism Report (AMR), which launches the next annual cycle of the Macroeconomic Imbalances Procedure, provides an objective analysis of Member States' economies based on a scoreboard of indicators that measure internal and external competitiveness. This year the AMR has found that several Member States are making progress in reducing their current account deficits and reversing losses in competitiveness. However, the AMR shows that further progress is needed to address high debt and the net international investment position of the most indebted economies, while high current account surpluses persist in some countries, suggesting possibly inefficient levels of saving and investment and the need to strengthen domestic demand. The AMR recommends an in-depth review of economic developments in 16 Member States, which have different challenges and potential risks that could spill over to the rest of the euro area and wider EU. The AMR does not prejudge the results of these reviews, which aim to assess whether imbalances exist, and whether previously identified imbalances persist or are being unwound.

European Court of Auditors annual report on the EU budget for 2012 — 05 November 2013, 16:51 CET

The annual report on the EU budget for 2012 financial year was published today by the European Court of Auditors (ECA). As independent auditor, the ECA has signed off the 2012 accounts of the European Union, as it has done each year since the 2007 financial year. But in most spending areas of the EU budget the report finds that the legislation in force is still not fully complied with. The ECA calls for a rethink of EU spending rules and recommends simplifying the legislative framework. The 2014–2020 programming period looks likely to remain expenditure oriented - designed for getting the EU budget allocated and spent - rather than focusing on the value it is intended to bring.

Standard VAT Return — 24 October 2013, 13:28 CET

A new standard VAT return, which could cut costs for EU businesses by up to EUR 15 billion a year, is proposed by the European Commission. The aim of this initiative is to slash red tape for businesses, ease tax compliance and make tax administrations across the Union more efficient. As such, the Commission says it it fully reflects its commitment to 'smart regulation' and is one of the initiatives set out in the recent REFIT to simplify rules and reduce administrative burdens for businesses. The proposal foresees a uniform set of requirements for businesses when filing their VAT returns, regardless of the Member State in which they do it. The standard VAT return - which will replace national VAT returns - will ensure that businesses are asked for the same basic information, within the same deadlines, across the EU. Given that simpler procedures are easier to comply with and easier to enforce, today's proposal should also help to improve VAT compliance and increase public revenues.

SME survey: Recession comes to an end; recovery at arm's reach — 17 October 2013, 20:52 CET

Index nearing 70-point line; smaller companies in services and construction hardest hit; recovery on its way

Euro Students' Award — 03 October 2013, 16:43 CET

This is a competition open to all secondary school students who enjoy learning about economics and would like to know more about monetary policy issues. There are prizes to be won, as well as the opportunity to participate in the European award event at the European Central Bank in Frankfurt am Main, Germany.

Billions lost in VAT Gap - study — 19 September 2013, 17:27 CET

An estimated EUR 193 billion in VAT revenues (1.5% of GDP) was lost due to non-compliance or non-collection in 2011, according to a new study on the VAT Gap in Member States. The study was funded by Commission as part of its work to reform the VAT system in Europe, as well as its wider campaign to clamp down on tax evasion. The study sets out detailed data on the gap between the amount of VAT due and the amount actually collected in 26 Member States between2000-2011. The main factors contributing to the VAT Gap are also presented, along with an overview of the effect of the economic crisis on VAT revenues.

Luxembourg: Economy Overview — 19 September 2013, 13:40 CET

Luxembourg's small, stable, high-income economy - benefiting from its proximity to France, Belgium, and Germany - has historically featured solid growth, low inflation, and low unemployment.