Finance and Monetary Affairs in the EU

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

Taxation of the financial sector — 28 September 2011, 17:15 CET

The financial sector was a major cause of the crisis and received substantial government support over the past few years. To ensure that the sector makes a fair contribution to public finances and for the benefit of citizens, enterprises and Member States, the European Commission on 28 September put forward a proposal for a financial transaction tax (FTT).

Common Rules for a Financial Transaction Tax - guide — 28 September 2011, 17:09 CET

The European Commission has presented a proposal for a financial transaction tax in the 27 Member States of the European Union. The tax would be levied on all transactions on financial instruments between financial institutions when at least one party to the transaction is located in the EU. The exchange of shares and bonds would be taxed at a rate of 0.1% and derivative contracts, at a rate of 0.01%. This could approximately raise EUR 57 billion every year. The Commission has proposed that the tax should come into effect from 1st January 2014.

Economic governance package explained — 21 September 2011, 14:09 CET

Last autumn the EU agreed to tighten financial supervision in the private sector, in an effort to head off any future financial crisis, now the public sector is under the spotlight as the European Parliament tackles dangerous imbalances in EU economies and considers new rules meant to limit the growth of debt and deficits in the member states. Four of the proposals aim to strengthen the Stability and Growth Pact (SGP) and budgetary surveillance, while the remaining two focus on monitoring and controlling macro-economic imbalances within the EU.

2010 report on European Globalisation Adjustment Fund (EGF) - guide — 23 August 2011, 22:41 CET

Nearly 23,700 workers dismissed due to economic crisis and major structural changes in world trade patterns were helped by the European Globalisation Adjustment Fund (EGF) last year, according to a report adopted on 22 August by the European Commission – more than double the number of workers helped by the Fund in 2009. The EUR 83.5 million paid out by the EU's Globalisation Fund to nine Member States are intended to help the national authorities as they support dismissed workers in finding new job opportunities.

Italy's Tremonti to meet eurozone's Juncker Wednesday — 02 August 2011, 20:24 CET

Italian finance minister Giulio Tremonti will hold talks on Wednesday in Luxembourg with eurozone chief Jean-Claude Juncker, as pressure intensified on Rome on government bond markets.

Access to bank account: Disappointment over Commission climb-down — 21 July 2011, 23:45 CET

Millions of Europeans without a bank account will be hugely disappointed by today’s Commission decision to give up on planned legislative action in favour of a non-binding Recommendation on access to a basic payments account. BEUC, the European Consumers’ Organisation has for many years been calling for EU action giving all EU consumers access to a bank account and deplores this climb-down of the Commission.

EC proposals on capital requirements take SMEs' concerns on board — 21 July 2011, 22:32 CET

Stricter capital requirements are needed and welcome as long as their impact on lending to small businesses is minimised, according to UEAPME, the European craft and SME employers’ organisation.

Capital requirements directive revision - guide — 20 July 2011, 17:54 CET

Banks have been at the centre of the financial crisis the global economy is facing since 2008. Lessons have been drawn from this and mistakes of the past should not repeat themselves. This is why the European Commission has brought forward today proposals to change the behaviour of the 8000 banks that operate in Europe The overarching goal of this proposal is to strengthen the resilience of the EU banking sector while ensuring that banks continue to finance economic activity and growth.

Access to a basic payment account - guide — 19 July 2011, 00:28 CET

According to recent studies, around 30 million consumers over the age of 18 in the European Union do not have a bank account. Out of these 30 million 'unbanked' citizens, it is estimated that between 6 and 7 million do not have a bank account because they have been denied access to one. These individuals cannot currently benefit fully from the Single Market. Today's Recommendation from the European Commission on access to a basic payment account will promote financial and social inclusion for consumers across Europe. The Commission invites Member States to ensure that such accounts become available at a reasonable charge to consumers, regardless of their country of residence in the EU or their financial situation. It will assess the situation in one year's time and propose any further measures as necessary, including legislative measures.

EU budget at a glance - online tool — 30 June 2011, 17:44 CET

What does the EU spend in your country and where does the money come from? The European Parliament's new multimedia tool will help you figure it out - EU spending per country - EU contribution per country - Total EU spending - Development of EU and national budgets

New Multiannual Financial Framework: evolution rather than revolution — 30 June 2011, 12:44 CET

EUROCHAMBRES supports the proposed 5% increase in the post-2013 EU budget, while regretting the minimal shifts in how the funds will be spent.

Multiannual Financial Framework (MFF) - guide — 30 June 2011, 00:07 CET

This Memo provides answers on the main aspects of the proposals put forward by the Commission for the Multiannual Financial Framework. It covers (1) the main background elements on MFF definition and functioning, (2) the main novelties proposed by the Commission on policies and (3) new ideas on the financing of the future budget.

EU Budget 2011 in figures — 29 June 2011, 23:55 CET

On 15 December 2010 the European Parliament voted the EU budget 2011 – the first EU budget under the Lisbon Treaty. With issues such as energy, the environment, climate, trade, growth and financial stability best tackled at European than national levels, this budget is essential to start the year with the required tools. It will allow to continue to invest in the EU's future through growth and employment enhancing measures. The budget 2011 foresees €126.5 billion in payments, which amounts to a 2.9% increase on 2010.

EU set to release more loans to keep Greece afloat — 20 June 2011, 00:48 CET

Eurozone finance ministers, gathering in Luxembourg Sunday, were set to release more loans to keep Athens from default in the summer and mull the shape of a second major bailout to appease nervous markets.

Country-specific Recommendations 2011 — 07 June 2011, 19:57 CET

With the publication of 27 country-specific recommendations on 7 June 2011, the Commission has taken another decisive step to support each Member State in delivering growth and jobs – and thus put the whole EU economy back on track. The recommendations are based on a thorough assessment (Staff Working Papers) of every Member State's plans for sound public finances (Stability or Convergence Programmes, or SCPs) and policy measures to boost growth and jobs (National Reform Programmes, or NRPs).

New external public procurement policy - guide — 07 June 2011, 18:03 CET

The European Commission is consulting stakeholders in all EU Member States for their views on a new policy on access to the EU's public procurement markets as announced in the Single Market Act of April 2011. An on-line questionnaire was launched today and will be open for contributions until 2 August. Replies will feed into legislation on this issue later this year. The aim is to create increased leverage for negotiating access to the procurement markets of other trading partners. This should help expand business opportunities for EU companies, as outlined in the EU's renewed trade strategy "Trade, Growth and World Affairs" presented in November 2010. In addition, the legislation seeks to establish clear terms of access to the EU's 1,800 billion government procurement market for suppliers from outside the EU. This should bring more legal certainty for both the EU public entities that need goods and services and their prospective international suppliers.

Tougher rules to protect taxpayers' money from fraud - guide — 26 May 2011, 17:10 CET

In a policy paper adopted today, the European Commission set out a series of measures enabling prosecutors and judges across the EU to fight fraud against the European Union’s financial interests more effectively. The Commission plans to strengthen substantive criminal law by clarifying definitions of crime such as embezzlement or abuse of power and reinforce the capacities of the European Anti-Fraud Office (OLAF) and Eurojust (the EU's judicial cooperation body). The EU will also consider how a specialised European Public Prosecutor's Office could apply common rules on fraud and other offenses involving EU funds. The Lisbon Treaty, which reinforced the EU's capacity to combat fraud by giving it the competence to legislate in the area of criminal law, will make these measures possible. Protecting taxpayers’ money is a priority for the Commission. Taxpayers must have the confidence and trust that European Union funds are only used for carrying out policies approved by EU lawmakers. Currently, the tools available for detecting and preventing the misuse of EU funds are sometimes inadequate and insufficient. Member State authorities still face many obstacles that hamper the effective protection of EU money against crime. This happens because there are different rules covering procedures, criminal acts and penalties, harming cross-border anti-fraud investigations and prosecutions.

New European Neighbourhood Policy - guide — 25 May 2011, 14:18 CET

Catherine Ashton, EU High Representative for Foreign Affairs and Security Policy/Commission Vice-President and Štefan Füle, EU Commissioner for Enlargement and Neighbourhood Policy, today launched a new and ambitious European Neighbourhood Policy (ENP) -- confirming the EU’s determined and reinforced engagement with its neighbours.

The EEIG: How can it help your business after the Financial Crisis? — 03 May 2011, 23:31 CET

The article sets out the main elements of the European Economic Interest Grouping, the manner in which this is set up in Malta, and identifies the ways in which the EEIG shall become more beneficial following the recent financial crisis.

Statistics — 18 April 2011, 00:51 CET

Eurostat - EU grants and loans in the field of statistics

Revision of the Energy Taxation Directive - guide — 13 April 2011, 18:20 CET

The European Commission has presented a proposal to overhaul the outdated rules on the taxation of energy products in the European Union. The new rules aim to restructure the way energy products are taxed to remove current imbalances and take into account both their CO2 emissions and energy content. Existing energy taxes would be split into two components that, taken together, would determine the overall rate at which a product is taxed. The Commission wants to promote energy efficiency and consumption of more environmentally friendly products and to avoid distortions of competition in the Single Market. The proposal will help Member States to redesign their overall tax structures in a way that contributes to growth and employment by shifting taxation from labour to consumption. The revised Directive would enter into force as of 2013. Long transitional periods for the full alignment of taxation of the energy content, until 2023, will leave time for industry to adapt to the new taxation structure.

Corporate governance framework for European companies - EC consultation — 05 April 2011, 17:46 CET

One of the lessons of the financial crisis is that corporate governance, until now usually based on self-regulation, was not as effective as it could have been. It is important that companies are better run. If companies are better run, not only is a future crisis less likely but they should also be more competitive. The European Commission has launched today a public consultation that addresses the ways in which corporate governance of European companies can be improved. Corporate governance is traditionally defined as the system by which companies are managed and controlled. The consultation covers a number of issues such as how to improve the diversity and functioning of the boards of directors and the monitoring and enforcement of existing national corporate governance codes, and how to enhance the engagement of shareholders. The deadline for submitting contributions in response to the consultation is 22 July 2011.

Creating a fair single market for mortgage credit - guide — 31 March 2011, 16:27 CET

The financial crisis has shown the damage that irresponsible lending and borrowing practices can have on consumers and lenders, as well as the financial system and the economy at large. This is particularly important in today’s integrated EU marketplace. With today's legislative proposal, the European Commission says it is determined to ensure that such practices are not repeated in the future, and to help consumers to regain confidence in the financial system. Borrowers will enjoy a higher level of protection through robust rules concerning advertising, pre-contractual information, advice, creditworthiness assessment, and early repayment. The requirement to provide personalised information to the consumer through a European Standardised Information Sheet will allow consumers to compare mortgage conditions from different providers. The proposed Directive also aims to create a more efficient and competitive single market for mortgages by creating a level playing field for all actors involved and making cross-border activity easier. The proposal now passes to the European Parliament and the Council of Ministers for consideration.

Consultation on the Europe 2020 Project Bond Initiative — 25 March 2011, 13:38 CET

The principal idea behind the Europe 2020 Project Bond Initiative is to provide EU support to project companies issuing bonds to finance large-scale infrastructure projects. The purpose of the consultation is to obtain market participants' and decision makers' feedback on the chosen mechanism and its essential terms and conditions, to gauge demand for the initiative in terms of market volumes and the depth of the investor base.

Assessment of the changeover to the euro in Estonia — 22 March 2011, 17:59 CET

The Commission on 22 March 2011 adopted a Communication on the introduction of the euro in Estonia. It presents the most important aspects of the changeover to the single currency and draws some conclusions for future changeovers in other Member States. All available information confirms that the changeover in Estonia was well prepared and smoothly implemented and perceived as successful by a large majority of citizens. Pricing stability has also been a key element of the changeover with the 'Fair Pricing Agreement', whereby subscribers to the Agreement commit not to increase their prices without justification.