Finance and Monetary Affairs in the EU

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

Access to finance for SMEs — 02 May 2013, 17:57 CET

A joint European Commission - European Investment Bank Group report on the activities facilitating access to finance for small and medium-sized enterprises (SMEs) in 2012 was presented at a meeting of the SME Finance Forum, on the eve of an Informal Competitiveness Council on 2 and 3 May in Dublin. European Commission Vice President Antonio Tajani, responsible for Enterprise and Industrial policy, also launched a new single online portal for all EU financial instruments for SMEs as well a web-based information guide for SME stock listings, to promote SME listings and stimulate investors’ interest in SMEs and mid-caps.

Access to EU finance — 02 May 2013, 17:49 CET

This site will help you to apply for finance supported by the European Union. To access EU finance, click on your country to locate banks or venture capital funds that provide finance supported by the EU.

European Stability Mechanism — 01 May 2013, 17:12 CET

The European Stability Mechanism is a permanent crisis resolution mechanism for the countries of the euro area. The ESM issues debt instruments in order to finance loans and other forms of financial assistance to euro area Members States. The decision leading to the creation of the ESM was taken by the European Council in December 2010. The euro area Member States signed an intergovernmental treaty establishing the ESM on 2 February 2012. The ESM was inaugurated on 8 October 2012.

Taxation trends in the European Union 2013 — 29 April 2013, 16:38 CET

The overall tax-to-GDP ratio, meaning the sum of taxes and social contributions in % of GDP, in the EU27 stood at 38.8% in 2011, from 38.3% in 2010 and 38.4% in 2009. The overall tax ratio in the euro area (EA17) increased to 39.5% in 2011, up from 39.0% in 2010 and 39.1% in 2009.

Platform for Tax Good Governance — 25 April 2013, 12:22 CET

The European Commission on 23 April set up the new Platform for Tax Good Governance, as part of a drive against tax evasion and avoidance.

Fight against tax fraud and tax evasion — 25 April 2013, 12:19 CET

In December 2012 to combat tax fraud and evasion at European level and globally the Commission adopted a Communication containing an action plan and two recommendations to Member States on aggressive tax planning and promotion of good governance in tax matters globally. This was a follow up to a June 2012 Communication. Problem - role of the EU - acting together - acting globally

Agreement in trilogue on the Mortgages Directive — 24 April 2013, 00:21 CET

Property buyers will be better informed about the costs and consequences of taking on a mortgage, better protected from market swings while the contract lasts and better protected if they cannot repay the loan, under a provisional deal struck by Euro-MPs from the Economic and Monetary Affairs Committee and EU member state representatives on 22 April 2013. To become law, this deal must be approved by Parliament as a whole and endorsed by the member states.

Mortgage credit — 24 April 2013, 00:16 CET

European Commission website on mortgage credit - Directive on credit agreements relating to residential - Code of conduct - Studies - Archives

Disclosure of non-financial and diversity information by certain large companies and groups (proposal to amend Accounting Directives) — 16 April 2013, 17:17 CET

The European Commission has proposed an amendment to existing accounting legislation in order to improve the transparency of certain large companies on social and environmental matters. Companies concerned will need to disclose information on policies, risks and results as regards environmental matters, social and employee-related aspects, respect for human rights, anti-corruption and bribery issues, and diversity on the boards of directors.

Excessive deficit procedure — 10 April 2013, 13:29 CET

In order for EMU to function smoothly, Member States must avoid excessive budgetary deficits. Under the provisions of the Stability and Growth Pact, they agree to respect two criteria: a deficit-to-GDP ratio of 3% and a debt-to-GDP ratio of 60%. If a Member State exceeds the deficit ceiling, the excessive deficit procedure (EDP) is triggered at EU level. This entails several steps – including the possibility of sanctions – to encourage the Member State concerned to take measures to rectify the situation. The EDP is established in the Treaty and specified in the Stability and Growth Pact legislation.

Macroeconomic Imbalance Procedure — 10 April 2013, 13:27 CET

The Macroeconomic Imbalance Procedure (MIP) is a surveillance mechanism that aims to identify potential risks early on, prevent the emergence of harmful macroeconomic imbalances and correct the imbalances that are already in place. The annual starting point of the MIP is the Alert Mechanism Report: Based on a scoreboard of indicators, it is a filter to identify countries and issues for which a closer analysis (in-depth review) is deemed necessary. The outcome of these in-depth reviews form the basis for further steps under the MIP whereby a graduated approach is followed reflecting the gravity of imbalances. The MIP has a preventive and a corrective arm. The latter is made operational by the Excessive Imbalance Procedure, which can eventually lead to sanctions for euro area Member States if they repeatedly fail to meet their obligations.

Simpler accounting requirements for small companies — 10 April 2013, 00:17 CET

The European Parliament and Council of the EU have agreed new, simpler accounting requirements for the preparation of financial information. It is hoped this will result in a reduction in the administrative burden for small companies (SMEs).

Disclosure requirements for the extractive industry and loggers of primary forests — 10 April 2013, 00:14 CET

EU Parliament and Council legislators have agreed a deal on the disclosure requirements for the extractive and forestry industries. The anti-corruption deal aims to force big mining companies to make public the payments they make to governments where they operate.

Green paper on long-term financing of the European economy — 25 March 2013, 18:23 CET

The European Commission has adopted a Green Paper that launches a three-month public consultation on how to foster the supply of long-term financing and how to improve and diversify the system of financial intermediation for long-term investment in Europe. Long-term investment represents spending that enhances the productive capacity of the economy. This can include energy, transport and communication infrastructures, industrial and service facilities, climate change and eco-innovation technologies, as well as education and research and development. Europe faces large-scale long-term investment needs, which are crucial to support sustainable growth. To fund long-term investment, governments, businesses and households need access to predictable long term financing.

Next steps towards a deep and genuine Economic and Monetary Union — 21 March 2013, 01:02 CET

The European Commission has presented two new Communications on the next steps towards a deep and genuine Economic and Monetary Union (EMU). The aim is to strengthen economic policy coordination and integration in the euro area. The Commission says these Communications follow commitments made in its 'Blueprint for a Deep and Genuine Economic and Monetary Union' last November, and respond to calls from the European Council to take work forward on these two fronts. The Communication on the ex-ante coordination of plans for major economic policy reforms contains options on how to organise EU-level discussions on large-scale economic policy reforms in the Member States before final decisions are taken at national level. The reasoning behind this is to properly take into account any positive or negative spillovers of the reforms on other euro area countries early on in the decision-making process. The Communication on a Convergence and Competitiveness Instrument (CCI) sets out options for two instruments: contractual arrangements for Member States to undertake specific reforms and financial support to help Member States implement these reforms. These two new instruments complement the structures that already exist for the surveillance of budgetary and economic policy at EU level, which have been enhanced through the European Semester, Six Pack and Two Pack reforms.

Fight against protectionism - Trade and Investment Barriers Report 2013 — 14 March 2013, 13:43 CET

The European Commission on 14 March reports some success in its strategy to fight global trade barriers. Efforts to fight protectionism over the last year, it says, are bearing fruit and could create better trade and investment conditions for EU companies. Yet the struggle against protectionism continues. The resistance of Europe's strategic partners to the plea for open markets comes into the limelight in the Commission's third annual Trade and Investment Barriers Report published today. In particular, China, India, Mercosur and Russia do not escape criticism.

Late Payments Directive — 12 March 2013, 14:21 CET

By 16 March 2013 EU Member States will need to have integrated the revised Late Payments Directive into their national law. It obliges public authorities to pay for goods and services within 30 calendar days or, in very exceptional circumstances, within 60 days. Businesses should pay their invoices within 60 calendar days, unless they expressly agree otherwise and if it is not grossly unfair to the creditor.

Terrorism blacklist - Consolidated list of persons, groups and entities subject to EU financial sanctions — 07 March 2013, 13:37 CET

The correct application of financial sanctions is crucial in order to meet the objectives of the Common Foreign and Security Policy and especially to help prevent the financing of terrorism. The application of financial sanctions constitutes an obligation for both the public and private sector. In this regard, the EU assigns particular responsibility to credit and financial institutions, since they are involved in the bulk of financial transfers and transactions affected by the relevant Regulations. In order to facilitate the application of financial sanctions, the European Banking Federation, the European Savings Banks Group, the European Association of Co-operative Banks and the European Association of Public Banks ("the EU Credit Sector Federations") and the Commission recognised the need for an EU consolidated list of persons, groups and entities subject to CFSP related financial sanctions. It was therefore agreed that the Credit Sector Federations would set up a database containing the consolidated list for the Commission, which would host and maintain the database and keep it up-to-date. This database was developed first and foremost to assist the members of the EU Credit Sector Federations in their compliance with financial sanctions.

Capital requirements: SMEs welcome deal to transpose "Basel III" rules in the EU — 28 February 2013, 13:30 CET

UEAPME, the European craft and SME employers' organisation, warmly welcomed the agreement reached between the EU institutions last night on the implementation in the Union of the "Basel III" rules on capital requirements.

EUR 414m CAP expenditure claw-back — 26 February 2013, 17:17 CET

A total of €414 million of EU agricultural policy funds unduly spent by EU Member States is being claimed back by the European Commission under the 'clearance of accounts procedure'. Member States are responsible for paying out and checking expenditure under the Common Agricultural Policy (CAP), and the Commission is required to ensure that Member States have made correct use of the funds. This money returns to the EU budget because of non-compliance with EU rules or inadequate control procedures on agricultural expenditure. Formally speaking, because some of these amounts have already been recovered from the Member States the net financial impact of today's decision will be some EUR 393 million.

EU Taxpayer's Code and EU Tax Identification Number - EC consultation — 25 February 2013, 19:52 CET

The European Commission has launched two public consultations on specific measures which could improve tax collection and ensure better tax compliance across the EU.

Financial Transaction Tax — 14 February 2013, 14:38 CET

The details of the Financial Transaction Tax (FTT) to be implemented under enhanced cooperation have been set out in a proposal adopted by the European Commission. As requested by the 11 EU Member States that will proceed with this tax, the proposed Directive mirrors the scope and objectives of the original FTT proposal put forward by the Commission in September 2011. The approach of taxing all transactions with an established link to the FTT-zone is maintained, as are the rates of 0.1% for shares and bonds and 0.01% for derivatives. When applied by the 11 Member States, this Financial Transaction Tax is expected to deliver revenues of 30-35 billion euros a year. There are certain limited changes in today's FTT proposal compared to the original one, to take into account the fact that the tax will be implemented on a smaller geographical scale than originally foreseen. These changes are mainly to ensure legal clarity and to reinforce anti-avoidance and anti-abuse provisions.

Outline of the EU budget 2014-20 — 09 February 2013, 01:22 CET

European leaders agreed their first ever cut to the bloc's budget Friday. The austerity budget for 2014-20 is around three per cent thriftier than the previous spending plan, while sparing certain core programmes such as the Common Agricultural Policy and Cohesion Funds used to help poorer regions. Here is an outline of the budget deal:

Online gaming and betting: EGBA welcomes extension of revised anti-money laundering directive to all gambling services — 05 February 2013, 18:04 CET

EU online gambling operators salute the European Commission’s updated rules (see link) on anti-money laundering. The new rules, which we hope will bring a greater level of consistency between national rules, confirm that online gambling is a clear cross-border economic activity covered by a growing number of EU-harmonised legislation.

Anti-Money Laundering — 05 February 2013, 18:33 CET

The European Commission has adopted two proposals to reinforce the EU's existing rules on anti-money laundering and fund transfers. The threats associated with money laundering and terrorist financing are constantly evolving, which requires regular updates of the rules. The package includes: a directive on the prevention of the use of the financial system for the purpose of money laundering and terrorist financing[ and a regulation on information accompanying transfers of funds to secure "due traceability" of these transfers.