Finance and Monetary Affairs in the EU

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

Turkey Investment Climate 2009 — 15 October 2009, 16:33 CET

The Government of Turkey (GOT) views foreign direct investment as vital to the country's economic development and prosperity. Accordingly, Turkey has one of the most liberal legal regimes for FDI in the OECD. With the exception of some sectors (see below), areas open to the Turkish private sector are generally open to foreign participation and investment. However, all investors – regardless of nationality – face a number of challenges: excessive bureaucracy, a slow judicial system, high taxes, weaknesses in corporate governance, sometimes unpredictable decisions made at the local government level, and frequent changes in the legal and regulatory environment.

Turkey: Economy Overview — 15 October 2009, 16:33 CET

Turkey's dynamic economy is a complex mix of modern industry and commerce along with a traditional agriculture sector that still accounts for about 30% of employment. It has a strong and rapidly growing private sector, yet the state remains a major participant in basic industry, banking, transport, and communication.

Simplification of regulation on international successions - briefing — 14 October 2009, 22:59 CET

The European Commission has adopted a proposal that should considerably simplify the rules on successions with an international dimension in the European Union. The aim is to make life easier for citizens by laying down common rules enabling the competent authority and law applicable to the body of assets making up a succession, wherever they may be, to be easily identified. In addition to providing more effective guarantees for the rights of heirs, legatees and other interested parties, the proposed Regulation will take some of the stress out of succession planning by enabling people to choose the law that will govern the transmission of all their assets. The Commission is also proposing the creation of a European Certificate of Succession enabling an heir or the administrator of a succession to prove their capacity easily throughout the EU.

Czech Republic Investment Climate 2009 — 13 October 2009, 16:35 CET

The small, open, export-driven Czech economy grew by over six per cent annually from 2005-2007 and the strong growth continued throughout the first three quarters of 2008. Despite the global financial crisis, the conservative Czech financial system has remained relatively healthy. The rate of Czech economic growth, however, began to fall in the fourth quarter of 2008, mainly due to a significant drop in demand for Czech exports in Western Europe. This trend is expected to continue, with many analysts predicting Czech economic growth to completely stagnate in 2009. Both unemployment and inflation are relatively low at 6% and 3.6% respectively.

Belgium Investment Climate 2009 — 12 October 2009, 22:58 CET

Belgium has traditionally maintained an open economy, highly dependent on imports and international trade for its well-being. Since WWII, foreign investment has played a vital role in the Belgian economy, providing technology and employment. Both the federal and the regional governments encourage foreign investment on a national treatment basis. Foreign corporations account for about one-third of the top 3,000 corporations in Belgium.

Austria Investment Climate 2009 — 07 October 2009, 23:20 CET

Major structural conditions and the decisive parameters for foreign investors remain unchanged and favorable, despite the global economic downturn. As a small, open and highly internationalized economy, Austria is swayed by world developments including the current downturn: 2009 will be the first full-year recession in Austria since 1981.

2009 Annual statement on the euro area — 07 October 2009, 16:16 CET

The euro-area economy is still suffering from the unprecedented global financial and economic crisis which began in the second half of 2008. The 2009 annual statement on the euro area (ASEA), with its accompanying annual report, analyses the current situation and proposes a way forward towards a sustainable recovery.

European Commission excessive deficit reports - briefing — 07 October 2009, 13:08 CET

Today the European Commission adopted reports under the corrective arm of the Stability and Growth Pact for Austria, Belgium, the Czech Republic, Germany, Italy, Slovakia, Slovenia, the Netherlands and Portugal.

The Euro - Business Benefits — 02 October 2009, 21:35 CET

In addition to cutting costs and risk, the European Union's single currency benefits business by encouraging investments and bringing more certainty to business planning – thus allowing businesses to be more effective overall.

The Euro and International Financial Markets — 02 October 2009, 21:31 CET

The euro is a key global currency which has an important role in international financial markets. It is used widely by third-country governments and private actors worldwide as a currency of choice for their reserves, their borrowing and for trade.

Financing Programmes for SMEs — 02 October 2009, 21:30 CET

The European Commission's DG ECFIN oversees programmes which provide access to finance for Small and Medium-sized Enterprises (SMEs). The day-to-day management of these activities is handled by major International Financial Institutions (IFIs).

DG Economic and Financial Affairs Contacts - European Commission — 02 October 2009, 21:26 CET

The European Commission's Directorate-General for Economic and Financial Affairs (DG ECFIN) strives to improve the economic wellbeing of the citizens of the European Union by developing and promoting policies that lead to sustainable economic growth, a high level of employment, stable public finances and financial stability.

The European Consensus on Development — 01 October 2009, 16:35 CET

The European Consensus on Development 2005 is a policy statement that reflects the EU's willingness to eradicate poverty and build a more stable and equitable world.

Commission proposal on temporary measures for a consistent response to carousel fraud in certain sectors - briefing — 29 September 2009, 22:44 CET

As a response to new and worrying fraud patterns reported by several EU Member States, the European Commission has adopted a proposal for an optional and temporary application of the reverse charge mechanism to supplies of certain goods and services, which will allow Member States to fight carousel fraud in a consistent manner across the European Union. The proposal notably covers greenhouse gas emission allowances that have been the object of VAT fraud during last summer. The proposal includes evaluation and reporting obligations for Member States which will allow a precise assessment of the efficiency of the measures.

EU Prospectus Directive — 24 September 2009, 16:30 CET

The Prospectus Directive lays down the rules governing the prospectus that has tobe made available to the public in case a public offer or admission to trading of transferable securities in a regulated market takes place in the European Union. One of its major achievements is the introduction of a "passport mechanism": the prospectus approved by the competent authority in one Member State is valid for public offers and admission to trading of securities in the entire EU.

Review of EU Prospectus Directive - briefing — 24 September 2009, 16:29 CET

In line with the "Better Regulation" principles, the European Commission has today put forward a proposal for the review of the Prospectus Directive. The proposal is part of simplification exercise within the Action Program of the European Commission for the Reduction of Administrative Burdens in the European Union. The proposal increases legal clarity and efficiency in the prospectus regime and reduces administrative burdens for issuers and intermediaries. It also bears in mind the importance of enhancing the level of investor protection and ensuring that the information provided is sufficient and adequate to cover the needs of retail investors. It reflects consultation with all major stakeholders. The proposal now passes to the European Parliament and the Council of Ministers for consideration.

European System of Financial Supervisors (ESFS) - briefing — 24 September 2009, 12:19 CET

The European Commission has adopted a package of draft legislation to strengthen the supervision of the financial sector in Europe. The aim of these enhanced cooperative arrangements is to sustainably reinforce financial stability throughout the EU; to ensure that the same basic technical rules are applied and enforced consistently; to identify risks in the system at an early stage; and to be able to act together far more effectively in emergency situations and in resolving disagreements among supervisors. The legislation will create a new European Systemic Risk Board (ESRB) to detect risks to the financial system as a whole, and it will also set up a European System of Financial Supervisors (ESFS), composed of national supervisors and three new European Supervisory Authorities for the banking, securities and insurance and occupational pensions sectors.

EC proposals to strengthen financial supervision in Europe - briefing — 23 September 2009, 12:38 CET

The European Commission has adopted a package of draft legislation to significantly strengthen the supervision of the financial sector in Europe. The aim of these enhanced cooperative arrangements is to sustainably reinforce financial stability throughout the EU; to ensure that the same basic technical rules are applied and enforced consistently; to identify risks in the system at an early stage; and to be able to act together far more effectively in emergency situations and in resolving disagreements among supervisors. The legislation will create a new European Systemic Risk Board (ESRB) to detect risks to the financial system as a whole with a critical function to issue early risk warnings to be rapidly acted on. It will also set up a European System of Financial Supervisors (ESFS), composed of national supervisors and three new European Supervisory Authorities for the banking, securities and insurance and occupational pensions sectors.

Financial Services Supervision and Committee Architecture — 23 September 2009, 12:37 CET

Currently, three committees exist at the EU level in the financial services sector, with advisory powers, the Committee of European Banking Supervisors (CEBS), the Committee of European Insurance and Occupational Pensions Committee (CEIOPS) and the Committee of European Securities Regulators (CESR). These are often known as the “Lamfalussy level 3 Committees” because of the role which they play in the EU framework for financial services legislation, created following a report by a group chaired by Alexandre Lamfalussy.

European Union food aid for deprived persons - European Court of Auditors report — 22 September 2009, 21:47 CET

Information note of the European Court of Auditors concerning Special Report No 6/2009 - European Union food aid for deprived persons: an assessment of the objectives, the means and the methods employed.

Commission Report on bank fee charges - briefing — 22 September 2009, 18:17 CET

There are widespread problems with the way banks inform and advise their customers according to a European Commission report on retail financial service published today. Specific problems include information which in many cases is difficult to understand, opaque bank fees, problems with advice and low levels of switching. The report describes the price structures of current accounts as "very opaque making it almost impossible for consumers to know how much they are paying and to compare different offers." For 66% of banks surveyed, bank fees were so unclear that experts compiling the report needed additional explanatory contacts with the bank to find the real costs of an account. Austria, France, Italy and Spain score poorly on transparency and are among the most expensive countries for banking accounts. The EU market is fragmented depriving consumers of the advantage of an EU Internal Market. Only 9% of EU consumers switched current accounts for the two years 2007-2008.

Retail Financial Services Report - Bank fees, pre-contractual information, advice and switching — 22 September 2009, 18:15 CET

Retail Financial Services Report - Bank fees, pre-contractual information, advice and switching - SEC(2009) 1251 final - The Consumer Markets Scoreboard is the main market monitoring instrument for the consumer policy area. After the publication of the first Consumer Markets Scoreboard early in 2008, which identified retail financial services as a sector in need of monitoring, the Commission selected three areas where consumers are faced with a significant number of problems. A new Commission Staff Working Document analyses the various retail financial services issues which were singled out for examination: pre-contractual information and the related issue of advice, the level and transparency of bank fees and bank account switching.

EU Budget 2008 - briefing — 22 September 2009, 17:05 CET

In a year marked by exceptional economic turbulence, the 2008 European Union budget continued to provide stable funding without increasing the financial burden on EU Member States. The 2008 financial report presented by the European Commission today shows how a record 40 per cent of the 2008 budget's EUR 116.5 billion was invested in measures linked directly to jobs, growth and competitiveness like the EUR 6 billion committed for new research projects (EUR 500m more than in 2007). Farm payments continued to fall taking 37% of funds, marginally less than 2007. In terms of EU GNI the 2008 budget was steady, rising only slightly to 0.94% (0.93% of EU GNI in 2007).

ECB Survey on the access to finance of SMEs in the euro area — 22 September 2009, 15:53 CET

The European Central Bank (ECB) has published a report on the results of a new survey on firms’ access to finance. The survey was conducted in cooperation with the European Commission between 17 June and 23 July 2009 and covered 6,000 small and medium-sized enterprises (SMEs) and large firms in the euro area. It provides data on financing conditions for SMEs in comparison with those for large firms in the first half of 2009. The report published today contains the results of the first wave of this survey. Given that this is the first time the survey has been conducted, the results should be interpreted with caution.

GDP and Beyond - Measuring progress in a changing world — 10 September 2009, 23:16 CET

Measuring progress in a changing world is the focus of a European Commission Communication launched at a high-level workshop on 9 September. The actions proposed in this Communication aim to improve the measurement of a nation's progress by complementing the current and best known measure of economic activity, Gross Domestic Product (GDP). As a part of efforts to make the shift towards a low carbon, resource-efficient economy the Commission will present a pilot version of a comprehensive environmental index in 2010. The European Statistical System will implement Environmental Accounting as a standard in Macro-economic statistics.