“None of our member states has the dimension to compete with China and the US, not even Germany!”, Head of EUREKA Pedro Nunes on another Sting Exclusive

This revealing exclusive interview with Pedro Nunes, Head of EUREKA, was conducted by Carlo Motta at the European Sting’s pavilion during European Business Summit 2014. In the following interview Carlo Motta will be signalled as C.M and Mr Nune as P.N.   C.M.: I am very please to welcome to our booth Mr Pedro Nunes, Head of EUREKA. So […]

Crimean crisis: not enough to slow down European indices

Two months and 19 days have passed since the commencement of the international crisis between Russia and Ukraine. Starting with the Ukrainian revolution which resulted in the President Viktor Yanukovych’s deposition and continuing with the formation of an interim government, Ukraine is now facing one of its most severe “battles” in its after-Soviet history. Europe […]

European banking stress tests 2014: A more adverse approach for a shorter banking sector

The aftermath of the financial crisis of 2007-2008 is mainly related to the banking sector. The capital adequacy of the European banks is an important aspect that European Regulation Bodies have to be aware of. During the past years the European Banking Authority (EBA) and the Committee of European Banking Supervisors are setting up simulations that […]

EU: Protecting victims’ rights from cartels and market abuses

It was high time that the European Union took care of citizens and companies, usually SMEs, who have suffered economic losses and other damages from infringements of the EU antitrust rules, such as cartels and abuses of dominant market positions. Until now it was very difficult for the victims to substantiate their claims for damages […]

European Banking Union: no one is perfect

Europe came to an agreement last Thursday 20 March to complete the second pillar of the European Banking Union with the establishment of the Single Resolution Mechanism (SRM). After months and months of negotiations between the European Parliament and the member states, Europe will have as of now the relevant legislation and the mechanisms to function a banking […]

The EU to bear the cost of eventual sanctions against Russia

It’s easy for Washington and London to threaten Russia with far reaching economic sanctions, but very many countries and businesses in continental Europe don’t see it that way. The US and Britain after having actively supported the ‘Kiev revolution’ which ousted Victor Yanukovych from the Presidency, now insist that the West imposes tough economic measures […]

The European giant tourism sector in constant growth

The tourism industry is undoubtedly a flourishing sector of the EU economy. However it suffers of an increased sensitivity to events like the 11 September 2001 catastrophe, which can harm its potential on a global scale. Even an airplane accident can undermine its activities for a long time. That’s why it is considered as a […]

No better year for the EU’s weak chain links

The European Parliament issued a Press release this week with the ambitious target to inform us all about what is bound to change in our lives this year, resulting from the application of EU laws. It mentions the mercury ban in thermometers and some new rules in recycling of electrical and electronic equipment, the legislation […]

Eurozone has practically entered a deflation trap

With consumer price developments in Eurozone remaining below the one percentage unit for many months now, disinflation (falling inflation) is just some decimal points away from deflation (negative inflation). Yesterday, Eurostat, the EU statistical service, released its estimate for the December headline inflation at 0.8% , down one decimal point from 0.9% in November. This […]

Commission offers discount on fines to banks for competition infringements

Today, the European Commission fined 8 major banks a total of € 1.7 billion for participating in cartels rigging interest rate benchmarks in markets for financial derivatives covering the European Economic Area (EEA). According to the Commission, four of these firms participated in a cartel relating to interest rate derivatives denominated in euro, and six […]

The Parliament paves the way for the creation of the European Banking Union

Today, 18 October, is the last day for MEPs to table their amendments with the Parliament’s Economic and Monetary Committee, in the process of formulating the legislature’s proposal for an EU mechanism to sort out troubled banks. This is the much debated bank resolution and recovery mechanism and fund. The Committee vote is planned for […]

The EU lets the bankers go on rigging the benchmarks

The European Commission adopted yesterday additional “measures to restore confidence in benchmarks following Libor and Euribor scandals”. The new draft legislation complements the political agreement on Market Abuse Regulation proposed by the Commission last July and endorsed by the Parliament and the Council. Benchmark setting is not confined only to interest rates like Libor and […]

Stricter rules and tougher sanctions for market manipulation and financial fraud

The plenary session of the European Parliament followed yesterday a motion of the Economic and monetary affairs Committee and adopted in ‘the first reading’ the text of a draft Regulation providing for tougher sanctions for financial markets manipulation. This is an ordinary legislative procedure repealing Directive 2003/6/EC. According to a Parliament Press release issued afterwards […]

Commission’s feeble response to financial benchmarks fraud

On Wednesday 18 September the European Commission is expected to propose a draft legislation on financial benchmarks to protect their setting from fraud and collusion. The stakes are so big that surpass the wildest imagination. For example Libor, the London market interest rate benchmark, is used as a base for interest rates settlements all over […]

Eurozone banks are unable to support real economy’s dawning growth

Industrial production in the European Union is definitively in a virtuous path as statistical data confirm business managers’ assessment, that their order books are as full as they have never been in the past. The same is true for industrial production. According to a press release published yesterday by Eurostat – the EU statistical service […]

Who and why want the EU-US trade agreement here and now

In the brief period of one week the European Union and the United States concluded last Friday in Washington the first round of talks for a major Transatlantic Trade and Investment Partnership (TTIP) that is their bilateral free trade agreement. The time schedule of this grandiose endeavour is unbelievably short, given the magnitude of the […]

Commission: Do it like the Americans in the food sector

Only some weeks after the European Union consumers learned that they were eating low quality and contaminated with phenylbutazone horse meat, having paid for it as if it was prime quality beef, the Commission chooses to release its proposal for a new Directive, providing for less controls and higher fines and charges. The new legislation […]

Commission and ECB prepare new financial mega-tool in support of SMEs

Yesterday the two most important institutions of the European Union, the European Commission and the European Central Bank, separately unveiled their intentions to seriously engage in an effort to create a new policy tool in support of the Union’s Small and Medium Enterprises (SMEs) and defragment Eurozone’s financial markets .The Commission issued an announcement entitled, […]

EU car manufacturers worry about an FTA with Japan

The European Automobile Manufacturers’ Association (ACEA), had expressed reserves over the EU Council and Commission initiative to start negotiations with Japan in order the two sides to conclude a far reaching Free Trade Agreement (FTA). ACEA was founded in 1991 and represents authentically the interests of the fifteen major European car, truck and bus manufacturers […]

Managers’ pay under fire

The European Parliament approved on Thursday 21 March, new rules capping fund manager bonuses. Undertakings for collective investments in transferable securities (UCITS), which gather assets from ordinary retail investors and pool them to buy bonds, shares or other financial products, must from now on operate under stricter rules, to protect investors in them properly, said […]

High-technology manufacturing saves the EU industry

According to a study by Eurostat, the EU statistical service, high and medium technology industries saved the manufacturing sector from a much larger fall during the difficult crisis years from 2008 until 2010. Still, the industrial sector has not yet fully recovered and in January 2013 compared to December 2012, seasonally  adjusted overall industrial production fell […]

Switzerland to introduce strict restrictions on executive pay

Michel Barnier, European Commissioner for Internal Market and Services, speaking recently during the 11th Annual Conference of the European Financial Services, revealed his frustrating experience from this years’ Davos gathering. On that occasion Barnier had the opportunity to meet the leaders of the world financial industry. Talking with them, he said he understood they are […]

Commission considers anti-dumping duty on Chinese solar glass imports

The European Commission launched today (Thursday 28 February), an anti-dumping investigation into imports of solar glass from China. According to the relevant official announcement, “The initiation is based on a complaint lodged by the association European Union ProSun Glass, which claims solar glass from China is being dumped in the EU at prices below market […]

EU Parliament raises burning issues over the FTA with the US

Yesterday, the European Parliament’s International Trade Committee discussed for the first time, the much advertised joint announcement by the EU and the US, to start negotiations for the conclusion of a bilateral Free Trade Agreement. As the European Sting predicted the FTA negotiators would be confronted with two very old and very thorny issues. According […]

German banks suffer of nausea amidst rough seas

Earlier this week, Dr Andreas Dombret, Member of the Executive Board of the Deutsche Bundesbank, responsible for financial stability and risk controlling, delivered an open lecture in Hamburg, entitled “In the year 2013 – Challenges from a financial stability perspective” . Apart from the burning questions he posed for a number of Eurozone countries’ sovereign debt, […]

Trying to cure bank cancer with analgesics

Last week the European Central Bank issued a press release welcoming the EU Commission’s initiative to regulate the banking industry’s setting of benchmark interest rates, like the Euribor. Interbank interest rate benchmarks are systemic and vital to the entire financial system. Any failures may cause losses for investors, distort the real economy and undermine market […]

Why the financial scandals multiply?

Deutsche Bank discharged yesterday a number of medium ranking dealers, related to the Libor fixing ring, while along with other major European lenders Deutsche appears ready to pay fines of hundreds of millions. Yesterday the Royal Bank of Scotland, another “systemic” financial group, agreed to pay $600 million in fines to US and British authorities […]

European markets itchy with short-term disturbances

European markets had a very bad day yesterday, Monday 4 February. During the first hour of business bourses all over Europe, the euro included, had a discouraging start. The largest losses were monitored in the Paris stock exchange, with the CAC index losing around 3%, a large percentage change  for a prime market. In view […]

Eurozone’s credibility rock solid

The European Stability Mechanism (ESM) issued yesterday its first short-term debt paper (bills), which met an unprecedented success in this capital market auction. The bid/cover ratio was 3.2. This means that for every euro of this debt issue, investors offered 3.2 euros. The bills mature on 4 April 2013. In detail this ESM’s bill issue […]