EUROPEAN CENTRAL BANK EU/CHINA CRISES Draghi sketches Debt crisis: Stiglitz tells Europolitics: «Austerity «growth pact» Page 4 Li backs EU Page 12 will surely fail» Page 20 EUROPOLITICS The European affairs daily Friday 4 May 2012 N° 4417 40th year FOCUS ECOFIN COUNCIL CRD IV: Majority of states back GNSS Agency compromise, UK still holding out moves to Prague By Manon Malhère behind George’s position is total and permanent flexibility.” The lower chamber of the Czech Parlia- After more than 15 hours of nego- Is the United Kingdom in a com- ment announced, on 3 May, that it has tiations at the Ecofin Council, on 2 promise mindset or is it opposed to an given the green light to the transfer to May, a qualified majority of member agreement at EU level? “I do not want Prague of the administrative headquar- states seemed willing to back a fourth to be described as being anti-Euro- ters of the agency in charge of manag- compromise text drafted by the Danish pean,” said Obsborne, who added that ing Europe’s own global navigation sat- Presidency on the reform of rules on he was seeking binding capital require- ellite system, Galileo. «The agency will capital requirements ments. move to Prague during the summer. for banks, known as The main The exact date has not yet been fixed CRD IV 1. The vote Osborne: “I don’t want stumbling block but I expect it will be 1 August,» said will not take place to be described as being for the 27 con- Czech Transport Minister Pavel Dobes. until the next Ecofin anti-European” cerns the degree The European Global Navigation Sat- Council, however, of flexibility ellite System (GNSS) Agency is the on 15 May, after to apply to the first EU regulatory body to move its “technical checks of the outstanding maximalist harmonisation initially headquarters to the Czech Repub- points,” said Danish Finance Minister proposed by the European Commis- lic, after having been provisionally Margrethe Vestager, on behalf of the sion. Two groups of member states are located in Brussels. EU Council Presidency. Meantime, it at odds on this question: on one side, The Galileo system is comprised of is hoped that the United Kingdom will France, Italy, Austria and Luxembourg, 18 operational satellites, and will start sign up to the compromise. which wish to keep flexibility to a mini- to provide the first ‘European GPS’ London finds that there has been mum; on the other, the United King- services to EU users from the end of progress on adding flexibility to pru- dom, Sweden, Poland and certain East- 2014, the Industry Commissioner dential rules, but still finds certain ern European states. This second group Antonio Tajani has said. Two satellites points very problematical. “If you look wishes to be able to apply more binding will be launched from Kourou, French at the text, we have not implemented rules. Guyana, on 28 September. These will Basel III,” observed Chancellor of the be added to the first two satellites, Exchequer George Osborne. “I don’t SYSTEMIC RISK BUFFER which were launched in October 2012, want to be taken for an idiot.” After intense discussions as 27, inter- he said. Six others will follow in 2013 Different observers find London’s rupted by numerous bilateral meetings, and eight others in 2014. The constel- position and negotiating tactics diffi- the Danish Presidency’s compromise lation should grow to 26 satellites by cult to understand. on capital requirements proposes: an 2015, and 30 in 2020. “To take account of what George additional ratio referred to as the sys- The programme will cost five billion wanted on capital, we worked further temic risk buffer, which authorises euro in 2015, said Tajani’s services. with the Presidency to increase flex- the member states to impose stricter ibility,” replied Internal Market Com- requirements for common equity ‘tier 1’ missioner Michel Barnier. “What lies capital than what (continued on page 4) Sold by subscription only © reproduction strictly prohibited in any language www.europolitics.info EUROPOLITICSTHE EUROPEAN AFFAIRS DAILY We have the details EU news for professionals www.europolitics.info ❏ Yes, I would like to subscribe to EUROPOLITICS daily: ❏ 6 MONTHS, 112 issues (paper version) + unlimited online access at the price of €975 (1). 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Rue d’Arlon 53 / B-1040 Brussels or by fax to: +32 (0)2 732 67 57 AP12 EUROPOLITICS N° 4417 Friday 4 May 2012 3 Contents N° 4417 Top Stories EUROPEAN CENTRAL BANK EU/CHINA CRISES Draghi sketches Debt crisis: Stiglitz tells Europolitics: «Austerity «growth pact» Page 4 Li backs EU Page 12 will surely fail» Page 20 Financial services, banks, Business & competitiveness In Brief insurance Industry: Producer price index up .........7 Waste sector merger authorised ............13 Ecofin Council: CRD IV: Competition: Court upholds cartel Green light for acquisition Majority of states back compromise, fine imposed on Legris and Comap .......8 of Pipelife by Wienerberger ..................13 UK still holding out ................................1 Kellogg cleared to buy Social affairs Pringles Snack Business ........................13 Economic & monetary affairs, Working time: ECJ: Entitlement Authorisation of GM soybean taxation to allowance from unused product not endorsed ............................14