Washington Wary of Meps' Regulatory Zeal with Money Markets Jobs And

Agriculture Council Economic crisis Eastern Partnership Fischer Boel sticks with Member states fear job summit could Moscow accuses EU of expanding dairy policy Page 6 be “counter-productive” Page 7 sphere of influence Page 10 EUROPOLITIcs

The European affairs daily Tuesday 24 March 2009 N° 3720 37th year

Focus EU/US Washington wary of MEPs’ Jobs and recovery regulatory zeal with money markets measures By Brian Beary in Washington Berès said the MEPs discussed this issue By Eric van Puyvelde extensively with Mary Shapiro, chair of the US lawmakers have cautioned a visiting US Securities and Exchange Commission. delegation of five MEPs against moving She said Shapiro had warned of the danger The downgrading of the jobs summit hastily to enact a new regulatory framework of having a “spaghetti bowl” of competing is a “bad signal to European citizens,” for the financial markets, while the US is still regulations. according to John Monks, general sec- deciding what to do. “The US retary of the European Trade Union Con- is not comfortable with the federation (ETUC). In a press release, he EU having clearinghouses for regrets “the decision of the EU authori- credit default swaps (CDS),” ties to downgrade” the summit due to the head of the delegation, be held in Prague, on 7 May (see page Pervenche Berès (PES, 7). The change in format of the event France), who chairs the Euro- “strengthens our call for people to sup- pean Parliament’s Economic port the European action days called by and Monetary Affairs Com- the ETUC in mid-May,” he added. “We mittee, said, on 20 March, need a European-wide coordinated after meeting top officials. effort on jobs and we are not getting it.” Expressing “surprise” that On his side, European Central Bank Congressman Barney Frank, © PE President Jean-Claude Trichet defends chair of the House Financial Berès: “They are hoping we will not go too far” the measures Europe has taken to deal Services Committee, “asked with the crisis. In an interview with the me not to discuss CDS,” Berès insisted “I IMF URGES EUROPE TO SPEND MORE Wall Street Journal, he states that “on cannot accept all the clearing will be done in On 19 March, the International Mone- both sides of the Atlantic, what has been the US”. CDS are an unregulated financial tary Fund (IMF) released a report criticising done on the fiscal side corresponds to product widely blamed for having helped to EU member states for not spending enough the gravity of the situation”. For the cause last autumn’s near meltdown of the to jumpstart their economies. “Discretion- eurozone, there is a need to take into global banking system. ary fiscal stimulus is sizable but falls short of account the combination of discretion- Washington is also worried about draft the 2% of aggregate GDP in 2009 and 2010 ary decisions taken by all governments, EU legislation to tighten supervision of recommended by the fund, particularly in plus the automatic stabilisers that are credit ratings agencies. “They understand 2010,” it says. The EU member states in much more important on this side of that we want a registration system in the EU the G20 - France, Germany, Italy and the the Atlantic, the level of public spending but they are hoping we will not go too far,” United Kingdom - have set aside 1% of their as a proportion of GDP, which is much Berès told Europolitics. EU lawmakers are GDP for 2009 and 0.8% in 2010, compared higher on this side of the Atlantic, and trying to decide whether to have an ‘equiva- to the US’ 2% for 2009 and 1.8% in 2010. each country’s room for manoeuvre. lence’ system akin to mutual recognition or The IMF also criticised the “ad hoc” way to require ratings of financial products done governments injected capital into their in the US to be ‘endorsed’ by an EU body. banks last autumn (continued on page 8)

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Contents N° 3720 Top Stories

Business & competitiveness Social affairs In Brief Telecommunications: Economic crisis: Member states fear job MEP slams Commission’s RWE move....11 Commission backs right to summit could be “counter-productive”..... 7 Free movement of services: change operators in one day...... 4 Belgium in violation ...... 11 State aid: Austrian aid scheme Economic & monetary affairs, Public information: Infringement for businesses gets green light ...... 4 taxation proceedings against Italy...... 11 Economic recovery plan: IMF EU-World Bank agreement...... 11 Financial services, banks, welcomes EU summit results...... 7 European Border Breakers Awards...... 11 insurance EU trade deficit exceeds 10 bn euro.....11 Banking: EU clearance for External relations Public consultation Slovenian liquidity scheme ...... 4 EU/US: Washington wary of MEPs’ on climate change policy...... 11 Financial markets: Three-way ta