Finance and Monetary Affairs in the EU

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

European Court of Auditors' Annual Report - guide — 13 November 2007, 17:34 CET

The European Court of Auditors' 2006 Annual Report identifies some improvements, particularly in agricultural spending, although errors of legality and regularity still persist in the majority of EU expenditure due to weaknesses in internal control systems both at the European Commission and in EU Member States.

Autumn economic forecasts 2007 - 2009 — 09 November 2007, 13:47 CET

The European Commission forecasts economic growth in the European Union to continue albeit at a moderating speed. This growth will contribute to further job creation in the EU, while the widespread budgetary improvement this year is set to come to a halt in 2008-2009.

Markets in Financial Instruments Directive (MiFID) - guide — 30 October 2007, 01:15 CET

On 1 November 2007, the EU Markets in Financial Services Directive enters into force. This landmark law will play a central role in creating a robust, common regulatory framework for Europe's securities markets. MiFID will increase competition among exchanges, multilateral trading facilities (MTFs) and investment firms, giving them a "single passport" to operate throughout the EU on the basis of authorisation in their home Member State. Investors will not only have access to a greater number of trading venues, but also a more robust and comprehensive framework ensuring high levels of investor protection. Significant market developments are already underway in anticipation of this new, more competitive environment.

Your questions on MiFID — 30 October 2007, 01:14 CET

On this website stakeholders, including firms, trade associations and investors, can ask questions relating to the recently-finalised Markets in Financial Instruments Directive (2004/39/EC) (MiFID) and its implementing measures (Directive 2006/73/EC and Regulation 1287/2006). MiFID and its implementing measures together establish a comprehensive legislative framework at European level relating to the establishment and conduct of investment firms, multilateral trading facilities and regulated markets.

5th OPEN DAYS-European Week of Regions and Cities — 09 October 2007, 19:43 CET

The 5th OPEN DAYS-European Week of Regions and Cities was held between 8 and 11 October 2007 in Brussels for about 5,000 expected regional policy experts and practitioners. Organised by the Committee of the Regions, the European Commission's Regional Policy Directorate General and expected 100 regions, cities and other institutions and private partners from all over Europe, this year's headline is: "Making it happen: regions deliver growth and jobs". About 150 workshops and sessions will focus on the new generation of cohesion policy programmes, which will be implemented in the course of 2007 in all European regions. Between 2007 and 2013, the public and private funding made available through these programmes amounts to about EUR 500 billion.

Quarterly report on the Euro area — 05 October 2007, 00:16 CET

With this publication, the European Commission's Directorate General for Economic and Financial Affairs intends to contribute to a better understanding of economic developments in the eurozone and to improve the quality of the public debate surrounding the area's economic policy. The Report will be released at the end of March, June, September and December.

EU Budget – facts and myths — 12 September 2007, 20:30 CET

Memo from the European Commission on myths and facts about the European Union Budget.

Excessive Deficit Procedure - EC assessment of UK — 12 September 2007, 16:02 CET

Ongoing procedures under article 104 of the Treaty - European Commission recommends abrogation of excessive deficit procedure for the United Kingdom.

European Commission buildings policy - questions and answers — 06 September 2007, 17:56 CET

EC memo questions and answers - EU policy on the buildings of the European institutions. located in Brussels, Strasbourg and Luxembourg.

Testing the EU fiscal surveillance — 06 September 2007, 18:54 CET

Real-time estimates of the potential output are essential in the EU fiscal surveillance framework. They are used for the calculation of the cyclically-adjusted budget balance, one of the main indicators in the assessment of the fiscal performance of EU Member States. Our paper examines whether and how different degrees of smoothness of potential output would have supported different decisions in the EU budgetary surveillance in terms of both timing and substance. The results of our simulations show that, the accuracy of the diagnostic instruments especially those that measure the risk of breaching the 3% of GDP reference value of the Treaty is surprisingly robust. Only a very high and excessive degree of smoothing of potential output would significantly reduce the reliability of the surveillance indicators. In the light of our results a somewhat higher degree of smoothing compared with the current practice would not seem to be harmful for EU fiscal surveillance. During economic upturns it would guaranty a higher degree of caution by signalling larger and possibly longer periods of economic 'good times' which would in turn warrant more fiscal consolidation.

Eurobarometer on Safer Internet for Children: qualitative study 2007 — 10 August 2007, 15:49 CET

In a pan-European qualitative study covering 29 European countries, children of 9-10 and 12-14 years old were interviewed about their use of online technologies, such as the Internet and mobile phones, and how they see and deal with risks. The study was commissioned by the European Commission and covers 29 countries (the 27 Member States, as well as Iceland and Norway). It aims at improving knowledge about Internet usage by children, as well as mobile phone usage (by those who own a mobile phone); their on-line behaviour; their perceptions of risk and safety related questions. The results of the study are to be used to contribute to designing the EU's Safer Internet Programme, and to increase the impact of awareness building actions.

EU crop yield forecasts for 2007 — 24 July 2007, 23:47 CET

he European Commission's in-house scientific service, the Joint Research Centre (JRC), on 25 July 2007 released its annual crop yield forecast for Europe. The central prediction is that the 2007 total cereal harvest will be 276 million tonnes or 1,6 per cent below the average of the last five years with Central and Eastern Europe losing out the most. This Memorandum provides information, maps and graphs on the forecast of cereal production. During the agricultural season, the European Commission's Joint Research Centre (JRC) regularly issues forecasts for the main crop yields and produces analyses of the impact of weather conditions on crop production. These are based on advanced methodologies using satellite remote sensing and mathematical models which simulate crop growth.

State aid for airports and start-up aid to airlines - questions & answers — 10 July 2007, 17:47 CET

In September 2005 the European Commission adopted "Community guidelines on financing of airports and start-up aid to airlines departing from regional airports" (hereinafter the 2005 aviation guidelines). These guidelines were put in place to codify Commission practice and to take account of changes which had taken placed in the European aviation market. The 2005 guidelines reflect the jurisprudence of the "Aeroports de Paris" cases wherein the European Courts have clarified that airport management and operation activities consisting in the provision of airport services to airlines and to the various service providers within airports are economic activities. The guidelines also reflect the competitive situation of the fully liberalised air transport market in place since the completion of the third aviation liberalisation packet in the 1990s.

Solvency II guide — 10 July 2007, 18:37 CET

The European Commission on 10 July 2007 proposed a ground-breaking revision of EU insurance law designed to improve consumer protection, modernise supervision, deepen market integration and increase the international competitiveness of European insurers. Under the new system, known as 'Solvency II', insurers would be required to take account of all types of risk to which they are exposed and to manage those risks more effectively. In addition, insurance groups would have a dedicated 'group supervisor' that would enable better monitoring of the group as a whole. The Commission aims to have the new system in operation in 2012. This proposal is part of the Commission's Better Regulation strategy and its firm commitment to simplify the regulatory environment and cut red tape. It will mean replacing 14 existing directives with a single directive. The proposal now passes to the European Parliament and Council for consideration.

Euro site — 06 July 2007, 10:33 CET

The euro, Europe’s single currency, is the currency of 13 European Union countries: Belgium, Germany, Greece, Spain, France, Ireland, Italy, Luxembourg, the Netherlands, Austria, Portugal, Slovenia and Finland. Euro banknotes and coins have been in circulation since 1 January 2002 and are now a part of daily life for 315 million Europeans living in the euro area.

EC Communication on VAT reduced rates – Frequently Asked Questions — 05 July 2007, 19:01 CET

The European Commission has launched a political debate on how to simplify current EU legislation on reduced VAT rates. In a Communication adopted on 5 July 2007, it considers that there is a real need for a simplification and rationalisation of the current VAT rates structure, in particular the reduced VAT rates. It believes that there is a place for more flexibility which would allow Member States to apply VAT reduced rates to local supplies. On the other hand, it says this flexibility needs to be balanced to ensure the proper functioning of the Internal Market and to avoid disproportionate compliance costs for business. To this extent, possible ways are put forward but no concrete proposal is made for new categories of products or services, given the need for prior political consideration by Member States. At the same time, the Commission proposes to extend, until the end 2010, most of the derogations which are about to come to an end.

Commission anti-trust decision against Telefonica - frequently asked questions — 04 July 2007, 11:54 CET

European Commission fine of EUR 151 million against Spanish telecom group Telefonica.

The SWIFT case and the American Terrorist Finance Tracking Program — 28 June 2007, 16:27 CET

After the 11th September 2001 terrorist attacks, the United States Department of the Treasury ("U.S. Treasury") developed the "Terrorist Finance Tracking Program" ("TFTP"). The TFTP is based on United States statutory mandates and Executive Orders authorising the U.S. Treasury to use appropriate measures to identify, track and pursue those who provide financial support for terrorist activity.

European Commission prohibition of Ryanair's proposed acquisition of Aer Lingus – frequently asked questions — 27 June 2007, 12:09 CET

The European Commission on 27 June 2007 prohibited, on the basis of the EU Merger Regulation, the proposed takeover by Ryanair of Aer Lingus. It says the acquisition would have combined the two leading airlines operating from Ireland which currently compete vigorously against each other. The Commission concluded that the merger would have harmed consumers by removing this competition and creating a monopoly or a dominant position on 35 routes operated by both parties. This would have reduced choice and, most likely, led to higher prices for more than 14 million EU passengers using these routes to and from Ireland each year. The Commission's investigation and market test of remedies offered by Ryanair demonstrated that these remedies were inadequate to remove the competition concerns. In particular the limited number of airport "slots" offered was not likely to lead to competition sufficient to replace the competitive pressure currently exercised by each airline on the other. The Commission therefore concluded that the concentration would significantly impede effective competition within the European Economic Area or a substantial part of it.

European Court of Auditors Special Report No 2/2007 — 26 June 2007, 23:29 CET

European Court of Auditors on Special Report No 2/2007 concerning the Institutions' expenditure on buildings

Taxation trends in the EU 2007 — 26 June 2007, 16:31 CET

This report contains a detailed statistical and economic analysis of the tax systems of the Member States of the European Union and Norway.

European Globalisation Adjustment Fund (EGF) — 25 June 2007, 19:35 CET

The EGF aims to help workers made redundant as a result of changing global trade patterns to find another job as quickly as possible. The fund was launched by the European Union in 2007 and will provide up to 500 million euro a year in support.

Preliminary draft budget 2008 — 21 June 2007, 23:34 CET

European Union Budget online

EU cash controls — 14 June 2007, 22:55 CET

The EU Council of Ministers on 12 July 2005 adopted a Regulation which aims to introduce an EU-wide approach to controlling cash movements into and out of the EU. The Regulation is applicable in all Member States as of 15 June 2007. It obliges travellers entering or leaving the Community and carrying any sum equal or more than EUR 10,000 (or its equivalent in other currencies or easily convertible assets such as cheques drawn on a third party) to make a declaration to the customs authorities.

EU Humanitarian Aid: Frequently asked questions — 13 June 2007, 15:42 CET

The European Commission on 13 June 2007 adopted a Communication paving the way for greater efficiency and coherence in delivering humanitarian aid. The Commission is calling for the European Union to work more closely together on a consensus that would boost its collective response to humanitarian crises. This includes advocating full respect for international humanitarian law, so that aid and aid workers can reach people in need.