Business News » European Union

European Banks should be ready for restructuring

viliyana89 — Thu, 17 Mar 2011 21:54:23 +0000

The banks in the European Union (EU) will be required to provide detailed information on government bonds held in trading and banking portfolios. This is one of the conditions of stress testing in the European banking sector, taking place this year, says a document disclosing the prior opinion of EU leaders. It will be announced at their summit on 24-25 March.
“Disclosure of information by banks will be improved, including the holdings of these government securities in their trading and banking book,” says the document, which Reuters has. The banking book contains those securities which the bank does not actively traded, because plans to hold to maturity. “Before the publication of results of stress tests Parties shall prepare specific and ambitious restructuring strategies of vulnerable banks, including decisions by the private sector (through direct financing from the market or the sale of assets) but also a solid framework for State support, in case of need, “says the document. The goal of stress testing is to restore confidence in the banking sector in the region, after checking his condition last year was widely criticized for its lack of transparency and reliability.
Only seven of 91 tested banks did not pass the tests last year, which showed that these seven banks to attract only 3.5 billion additional capital, which was much less than expected. All banks in Ireland included in the test, it passed, but three months later, Dublin was in need of 85 billion rescue loan for shaken state of the banking sector, with major Irish banks had to be rescued by the state.

EU requires high restrictions for CO2

viliyana89 — Sun, 30 May 2010 17:02:18 +0000

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.
Under the plan, the EC, the new restrictions on greenhouse gases will reduce air pollution and improve the health of millions of people, which will generate in the Union’s economy 9.4 billion euros annually.

EU may give compensations for air companies

viliyana89 — Tue, 20 Apr 2010 10:53:14 +0000

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.
Germany’s Transport Minister Peter Ramzauer however, oppose those claims, saying: “None of the people who tried to put pressure on us is not ready to assume the responsibility of me as Minister of Transport. I am responsible for security and only when I assure you that nothing bad will happen, will change position. ” Three other major European airlines – British Airways, Air France and SAS also said it suffered big losses. The British carrier said it canceled flights in Europe claim the company between 17 and 23 million per day. “Air France” declare about 35 million loss per day, a Scandinavian Airlines SAS announced that for the past four days have lost 29 million euros. All Russian airports work, but hundreds of Russian airlines flights to and from various European cities were canceled due to the closure of much of European airspace. In an interview with Radio Echo of Moscow Russian Minister Igor Levitin transport urged the European Union to come up with a common position that combines the security of flights and the need for regulation of crisis: “We look forward to the conference of transport ministers of the EU, which to decide the position of Brussels on flights. For us it is very important because currently each Member State acting in its sole discretion, and unfortunately there is no common position of the EU. Many hope today’s conference to be constructed in such ” Levitin said. We studied carefully the status of all Russian aircraft, which flew to different parts of Europe in recent days and found no technical problems, said Russian Minister of Transport. Reuters before the agency chief Giovanni Bisignani of IATA criticized the European authorities that are “missed opportunities for safe aviation. IATA calculations showed that paralyzed air-sector first in Europe and now in worldwide damage caused to aviation are already higher than for the terrorist attacks of September 11, 2001, when American airspace was closed for three days . At a press conference in Paris Bisignani urged to come out of this blanket closure of the airspace and to find flexible ways to open air corridors.

Barroso required from EU leaders more resolute support for Greece

viliyana89 — Tue, 16 Mar 2010 03:01:54 +0000

The European Commission President Jose Manuel Barroso insisted before the EU leaders to take more decisive action on financial assistance to Greece before the summit, which will be held on March 25, wrote the international agencies. In an interview in today’s edition of the German edition Handelsblatt Barroso stated that the Commission is working on a plan to settle on a system of bilateral loans to Greece, he stated that this should happen as soon as possible. Have after the meeting to give a clear signal of how they will react to the situation. Otherwise, there would come much uncertainty as this may endanger the stability of the euro area and to encourage speculation, further indicates the head of the EC. Barroso added that the decision should be taken on a principled basis and to prepare a mechanism for possible action, if Greece decides to resort to it. Germany’s Chancellor Angela Merkel is the most serious obstacle to the adoption of a plan for Greece, which provides for EU funding for Athens. Recalled its statement at the end of last week, in which Merkel stated that the upcoming meeting on Thursday does not foresee the vote on a financial package to Greece.
According to sources from the EU IMF may provide about half the 25 billion euros, of which Greece is needed.

Merkel: Greece can not get out of the EU

viliyana89 — Mon, 08 Mar 2010 15:49:28 +0000

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.
After meeting with Merkel, Prime Minister Papandreou said that Greece is not seeking financial assistance from Germany, and discussed the future modernization of Greece. Budgetary and debt crises in Greece increased as a result of recession in the economy. For the second time in recent months the government has adopted in Athens on March 3, anti-crisis measures, which provide savings to 4,8 billion euros this year by raising taxes, reducing salaries of civil servants, freeze pensions. This should help Greece to meet its obligations towards the EU and to reduce its budget deficit by 4 percentage points from the current 12.7 percent of GDP to 8.7 percent by the end of 2010. In the joint communique listed seven key themes of cooperation and in particular on energy and climate change, environmental protection, protection from disasters, migration and civil society dialogue. Greek Prime Minister will tomorrow meet with President Nicolas Sarkozy of France, and on Monday with the state chapter of the United States Barack Obama.

European Commission fined “plastic” cartel with 173 millions EUR

viliyana89 — Wed, 11 Nov 2009 17:10:11 +0000

The regulatory authorities of the European Union today imposed a fine of companies Akzo, Ciba, Elf Aquitaine and seven others totaling 173 million euro. Penalty measure is to negotiate the prices of their manufactured additives for plastics. The fine, which was announced by EU Competition Commissioner Neelie Kroes, is required for cartel activities and price fixing in the market for such products. Activities of companies, which is punishable by fines today, is performed during the period 1987 – 2000 year. The European Commission has begun an investigation of unannounced inspections in 2003. Ciba was fined 68.4 million EUR, Akzo will have to pay 40.6 million EUR, Elementis- 32.57 million EUR and Elf Aquitaine – 28.6 million EUR. The companies fined due to cartel business are fined because of deals made in cartel agreement and monopolizing the prices for business. Really this action of European commission is one of the hardest done in Western Europe for such violation, but according to the words of European Commission each try for cartel agreements will be fined and investigated according to the law.
The fines can be appealed in 7 days.

Wages in Romania reach the EU average after 40 years

viliyana89 — Mon, 07 Sep 2009 08:10:09 +0000

The Romanians will have income comparable to the average income in the European Union at the earliest after 40 years. This is indicated by the analysis of rating agency Moody’s, wrote newspaper Adevarul quoted by Focus Agency. “We will have a relatively long period until the benefits are closer to their average level in the EU. This process will continue for a long time, probably about 40 years, “says a report of the agency. In addition, Moody’s believe that the Romanian economy will continue to record growth after the crisis, but at a slower pace than recorded in the period before the recession. Last year, income in Romania amounted to an average 46% of their average level in the EU, which is calculated by comparing the purchasing power – the main indicator of development, says Eurostat.
The only country that has a weak indicator in this respect Bulgaria (40%).

Fifth serial rise of business and consumer confidence in the Eurozone

viliyana89 — Wed, 02 Sep 2009 06:15:56 +0000

The business and consumer confidence in 16 states of the Eurozone is better for 5th consecutive month. Notes strong upswing in activity in the services sector. Business and consumer confidence in 16 states of the Eurozone is better for 5th consecutive month. Notes strong upswing in activity in the services sector. Business climate index for the Eurozone rose in August to -2.21 points for the rising expectations of -2.48 to -2.71 points after points in July. The index of consumer confidence in the Eurozone in August rose to -22 points in the rising expectations of -21 points to -23 points after July. he index of economic confidence in euro zone in August rose to 80.6 points in expectations for a rise to 78 points after 76.0 points in July. The index of confidence in the services sector in the Eurozone in August rose to -11 points after -18 points for July. The expectations of the market were to rise slightly to -17 points.
The index of industrial confidence in the Eurozone in August rose to -26 points in the expectation that after -28 points to -30 points in July. Rising confidence bottoms record supports previous economic indicators and evidence with them to mobilize the economy and potential growth for Q3. Capacity utilization in the industrial sector fell to a record 69.5 percent from the floor after 70.9 percent for May and is expected to continue to enhance those suspicions.

Barroso: Europe is coming up in 2010

viliyana89 — Wed, 26 Aug 2009 10:15:59 +0000

On a business forum in Barcelona, European Commission President Jose Manuel Barroso predicted that the world will be the same after pass this economic crisis. Barroso said that Europe will start to come out of the crisis in 2010 He said the continent should be made much effort to overcome the serious situation. Barroso for most of Europe’s main concern is unemployment. This is the main drama of European society. Barroso added that the European Union will show flexibility in terms of limit of 3 percent of GDP, which must not pass the budget deficits of member states of the Union.
Really all of the indexes are showing that Europe is quite close for running away from the crisis.

Romania reported 73% decrease in the deficit on current account

viliyana89 — Thu, 13 Aug 2009 12:19:57 +0000

The current account deficit of Romania registered one of the biggest adjustments to the figures in its history, falling by 73.3 percent in the first half of 2009 compared to same period in 2008, reaching a value of 2.375 billion euros, says e-edition Ziare.com, cited by Focus Agency. Key role in the decline of the current account deficit is the deficit of trade balance, amounting to 2.96 billion euros or 67.2 percent lower than the first half of 2008, shows data of the National Bank of Romania.
The current account deficit was financed eaten by foreign direct investment amounted to 2.894 billion euros. At June 30, 2009 external debt in the medium and long term reached 57.237 billion, an increase of 11.7 percent compared to December 31, 2008.
On the other hand, during the same period foreign debt in the short term, decreased by 17.8%, reaching 18.239 billion.