The European Union will present surprising new plan to combat global warming, according to which EU countries will have to meet the most ambitious program to reduce greenhouse gas emissions worldwide in this decade, reports the British Times. The European Commission has decided to impose new restrictions on emissions of CO2, despite the financial difficulties of the old continent. According to information in Times plan provides for the EC by 2020 greenhouse gas emissions in the Union to be reduced by 30 percent from their levels in 1990, which will cost extra 39 billion euros per year. Under existing arrangements, by 2020 the EU must reduce greenhouse gas emissions by 20% from levels in 1990, the price which is 56 billion euros per year. The arguments of the committee are that the new cuts in CO2 emissions are much more easily achievable due to the recession. Last year’s greenhouse gas emissions in Europe fell by 10% as a consequence of the closure of thousands of factories. Also in 2009, CO2 emissions were already 14 percent below levels in 1990. After the collapse of the World Summit on climate change in Copenhagen in December last year, reaching a global climate agreement by the end of 2011 is unlikely.
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The chancellor Angela Merkel urged Germans to tighten belts and adjust to the rate of savings. Germany lives above its means for years and it said Chancellor during the ecumenical Congress in Munich. “This calls for drastic economies,” Merkel was definite. In 2015 should be saved 10 billion a year, said Chancellor. Angela Merkel’s statement made just days after asking a tight fiscal policy within the European Union. For its part, the Union of towns and municipalities in Germany called for adequate measures for the expected record deficit in municipal funds. Over the next three years there is no prospect of raising revenue, so we need to freeze spending, the union warns. Before it became clear that cities and municipalities are in the worst budget crisis since the founding of the Federal Republic. This year the deficit could reach 15 billion – 3 billion more than expected. This was a hard decision got by Angela Merkel, but the country should be protected by the situation, which happened in Greece, Spain and Portugal.
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The European Commissioner for Economic and Monetary Affairs Commissioner Olli Rehn rejected claims that the economic crisis in Greece will overtake Spanish as “speculation”. At a news conference in Brussels, where he presented a spring economic forecasts for the EU, Rehn said that Spain does not need such financial assistance and will be offered. “There is no need to offer such assistance. Are unlimited speculation in yesterday’s news about a possible aid from the IMF in relation to Spain. I think we need to” wings “of these false rumors, to avoid unnecessary speculation nurture already reached almost euphoric levels in some circles.” Markets yesterday reported a record drop after rumors that Spain will request financial assistance from the EU or the IMF. We recall that yesterday the IMF Director General Dominique Strauss-Kahn said the fiscal crisis risk in Greece to reach the other weaker European economies. But he stressed that the immediate danger is not referring to that state of Portugal and Spain. In an interview with French newspaper “parasite” Strauss-Kahn said that should prevent such “contaminated” by developing a plan for Greece pursues precisely this purpose.
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In March 2010 the retail trade in the EU grew by 0.3% over the same month last year, according to figures from Eurostat, which included the performance of 18 countries of the Community. Only in the euro zone retail sales fell by 0.1% yoy. Strongest annual decline for the countries for which data are reported in Bulgaria, which is 11.6 percent, behind us as only a drop of Latvia with 10.6 percent. On a monthly basis in March retail sales in the euro area remained unchanged compared to February, and throughout the EU will not exercise the indicator. Economists forecast the euro area were reported to .2 percent increase in retail sales on a monthly basis. In Bulgaria, the decrease compared to February was 1%, Eurostat reported. Meanwhile it became clear that 110 billion that Greece will probably get to cover the deficit and accumulated debt, the country will provide an opportunity not to seek funding through the sale of debt securities for 2 years.
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The European Union is close to agreement on the adoption of a directive regulating the activities of hedge funds, which will significantly limit the opportunities offshore funds to raise funds among European investors, reported Wall Street Journal. The proposal provides European investors be allowed to invest their money in funds registered in the blacklist, which will be prepared by the European administration. To be removed from the blacklist, the countries will have to meet four or five criteria, “said Jean-Paul Goze MEP. The idea of adopting legislation on hedge funds cause concern among owners of such funds which are managed mainly from London, but often deposited their investments in the Cayman Islands or other offshore locations. American Financial Secretary Timothy Geytner also expressed its concern that some of the proposed regulatory options would unfairly restrict U.S. funds to the European market. Before becoming a law voted by Parliament regulations must be agreed by national governments of EU member states that are represented in the Council of Ministers. Regulations are intended to come into force from 2012
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Between 2000 and 2009, exports of EU goods to Japan fell by about 20%, from 45 billion to 36 billion euros, Eurostat reported. EU Imports from Japan fell by almost 40% from 92 billion to 56 billion. Thus, the EU deficit in trade with Japan has fallen from 47 billion in 2000 to 20 billion in 2009, the share of Japan since the total movement of goods outside EU decreased significantly. In 2009, Japan fell 3 percent of exports and 5% of EU imports. That it was the sixth largest trading partner of EU. On the occasion of the 19th Summit of the European Union and Japan, which will take place on Wednesday, April 28, 2010 in Tokyo, Eurostat presented data on trade in goods and services and investment relations between the EU and Japan. By Member States of the EU in 2009, the largest exporter to Japan was Germany with 10.8 billion or 30% of total exports, followed by France (4.8 bn or 13%), UK (3 8 billion or 10%) and Italy (3.7 billion, or 10%). Germany was the largest importer (13.8 billion or 25%) to the Netherlands (8.7 bn or 16%) and the United Kingdom (7.0 bn or 12%). Most Member States have made in 2009 in the trade balance deficit with Japan. The highest deficits were announced by the Netherlands (-6.2 bn), Belgium (-4.3 bn), United Kingdom (-3.2 bn), Germany (-3.0 bn) and Spain (-1.2 billion) and the largest surpluses were registered in Ireland (+1.3 bn) and Denmark (1.0 billion).
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Promoting economic recovery, investment in European youth and infrastructures of the future are the priorities of the draft budget for 2011 adopted by the European Commission on April 27, 2010, reported portal “Europe”. Of the 142.6 billion EUR 64,4 billion EUR are allocated to actions for economic recovery (3.4% compared to 2010). In addition, funds in support of the flagship initiatives of the EU Strategy for 2020 (growth) accounted for around 57.9 billion EUR (about 40% of the budget). “The ambition of the draft is to continue to support economic recovery, together with Member States, particularly in favor of the more vulnerable in this situation after the crisis, as reflected in the new budget comprehensive EU approach to job creation and growth “said Budget and Financial Planning Janusz Levandovski. He stressed that the draft budget adopted today provides Europe and its citizens incentives to develop the economy of the future: its main components are research and innovation, sustainability and inclusion. This draft is aimed at helping young people to be better prepared for future promotion of small and medium enterprises make best use of EU funds for the bailout.
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The European Commission may approve compensation for air-companies, which lose every day $ 250 million, news agency Reuters, citing sources at the ongoing extraordinary meeting in Madrid of Transport Ministers of the EU. It involved the Bulgarian Minister Alexander Tsvetkov. His colleagues who could not freely fly to the Spanish capital involved in conferencing. “However, safety will be the main factor that will affect any resumption of air traffic in Europe. Because of this and our main concern primarily relates to safety and prevention,” said Spanish Minister of Transport Jose Blanco, whose country holds the rotating presidency EU. International Air Transport Association (IATA) called before the meeting to take steps to restore air traffic severely impaired due to volcanic ash cloud, which closed a number of European airports. Some European airlines have already condemned European governments on how they have reacted to the effects of volcanoes in Iceland. In Germany, the airspace above and which remains closed today, airlines do not hide their dissatisfaction and concern about losses. The two companies – Lufthansa and Air Berlin, insist on mitigation of restrictions on air traffic. “We want policy makers and responsible authorities to evaluate the situation to be put back into traffic and minimize losses for Germany’s economy “said spokesman airline Air Berlin Hans Christoph Noak said on Radio correspondent in Berlin.
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Germany’s Chancellor Angela Merkel has dismissed suggestions that Greece burdened with debts may leave the EU. “Asked whether Greece should leave the EU does not exist,” Merkel said after meeting with Prime Minister of Greece George Papandreou. Debt of 300 billion and budget deficit of 12.7 percent of GDP made Greece “weak link” of the euro area and Germany has the largest economy in the community. Berlin has repeatedly refuting suggestions that it intends to “save” proved to be in Greece Financial Crisis, recalls agency Reuters. Merkel urged Greeks to “bear with” give effect to the new anti-crisis measures, and to understand that the residence of Athens in the euro area is very important. “All we are faced with economic crisis, we are in a complex situation and therefore understand what forces need to be implemented all measures taken to emerge from the crisis”, said Chancellor of Germany. In the popular press release about the meeting between Papandreou and Merkel says both countries will develop partnership relations on many issues and together we will resist the challenges facing the EU. Greece is in debt and financial crisis, which forced the government to take serious measures for savings. Greece says it does not need economic and political support from the EU.
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The deficit in trade between the EU-27 and the rest of the world reached 105.5 billion in 2009, while a year earlier – in 2008 amounted to 258.4 billion, showing a pre-data statistical office Eurostat. As regards the euro zone trade balance was positive amounting to 22.3 billion euros, against a deficit of 54.7 billion for 2008. In December 2009 the EU has 2,5 Bn deficit in trade with third countries. Over the same period last year there was a decline in the deficit from 8,8 billion. The previous November, the trade balance was again negative, amounting to 6,8 billion euros, 24.4 billion compared to November 2008. Eurostat data for the period January – November 2009 showed a significant reduction in the deficit in trade in energy resources – from 350.7 billion euros in 11 months of 2008 to 212.1 billion in 2009. Reduced surplus in trade in machinery and equipment (from 138.9 billion to 99 billion euros). As regards trade with chemical products, however, there is growth in the surplus with 5,4 billion euro to 74.1 billion euros in total.
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