08/10/08
I thought that some people might be interested in Europe and the banking crisis concerns dealt with in my article today, written for the Yorkshire Post.
Guarantee details to be delayed until sanctioned by EU: Stephen Collins of the Irish Times writes today: “Publication of the Government’s bank guarantee scheme has been deferred until all the details have been sanctioned by the EU Commission and the full scope of the schemes devised by other EU countries becomes clear.At a special Cabinet meeting last night, Minister for Finance Brian Lenihan briefed colleagues about the detail of the scheme, but it is not expected to be published until later this week or even next week.”
EU warns Hungary tax cuts must not risk budget goal: From Reuters today: “Hungary’s planned tax cuts for 2009 go in the right direction as they aim to support growth but they must not threaten the target of ending an EU budget disciplinary action next year, the European Commission said. “The deficit target for 2009 leaves no room for manoeuvre and the government needs to ensure that the planned tax cuts do not jeopardise the target of ending the excessive deficit next year," Amelia Torres, spokesperson for EU Monetary Affairs Commissioner Joaquin Almunia told Reuters on Wednesday.”
EU commissioner defends bank nationalisations in press interview: AFP reports today: “European Industry Commissioner Guenter Verheugen defended on Wednesday bank nationalisations to prevent bankruptcies, in an interview with the German daily Hannoversche Allgemeine Zeitung. If a bank were about to fail, "I would stop at nothing, as unconventional as it might be, even if nationalisation turned out to be the only way to prevent a collapse," Verheugen said.”
Quest to show solidarity belies the EU’s divisions: Bronwen Maddox in The Times writes: “It would be wrong to say that the European Union has done too little, too slowly on the financial crisis, though many will. Several, as it happens, did not wait for the joint communiqué of the 27 countries before criticising the EU.”
Spain goes it alone as Europe squabbles over unity: David Charter in Luxembourg and Tony Halpin in Moscow report in The Times: “ Spain became the latest European country last night to announce a unilateral rescue package, while Iceland received a €4 billion loan from Russia. Spain declared that it would guarantee all bank accounts to the tune of €100,000 (£78,000), and set up a €30 billion fund to prop up its financial system.
