Here‘s the text of the agreement on budgetary policies put together by the EU finance ministers yesterday. It seems pretty weak, with little by way of new concrete initiatives. It’s full of aspirations to reduce deficits. The new element that might have been expected in relation to an increased role for the European Commission is restricted to the following statement:
Ministers are committed to fully and strictly implement the surveillance framework defined by the SGP and to contribute actively to the Task Force set up by the President of the European Council, which will consider ways to strengthen the fiscal surveillance framework as well as the surveillance of competitiveness developments in the euro area.
A Task Force that’s going to “consider” things doesn’t sound like much to get excited about.
Here‘s the statement tasking the European Commission with running the €440 billion Special Purpose Vehicle. (You have to love how there’s a Special Purpose Vehicle at the scene of every economic disaster these days.)
31 replies on “EU Finance Ministers Statements”
“(You have to love how there’s a Special Purpose Vehicle at the scene of every economic disaster these days.)”
Yeah, having put the failed initial TARP plan from the US into train (in Ireland, Germany and others), the whizz-kids at the Commission are now putting in another failed Paulson plan – the MLEC, this time for sovereigns. SPiVonomics in action.
No wonder the language is pusillanimous. The words are too ashamed to stay on the paper!
The stance should become clearly restrictive as from 2011
Oooops! Hints to the ECB about interest rate rises? But maybe by then they will have discovered that this “recession” is a depression. So, lots to look forward to!
“A strong commitment to achieve the medium-term budgetary targets should allow for a rapid return to deficit levels compatible with a durable reduction in the government debt level in all Member States, which is also
necessary to ensure that public debt does not compromise the economic recovery”
Sounds like Abracadabra! Great to see concern, now, for debt! Wouldn’t want to compromise recovery!
“the surveillance framework defined by the SGP” ???
About time, too!
Special Purpose Vehicle
Euro area only of course. I do not know why they limited themselves to a specific sum. Maybe repetition was designed to impress?
Sounds from both documents, that all will be well. So a banking system may survive.
Yes – very weak.
Angela and Niclas in a bit of a tiff …….. Systems of Money [Finance] and Power [EU politics] in shambolic health …………. EU citizens in their Lifewolds will suffer more …………. not a good day at EU level.
Germany [1/4 of EU economy] doin OK – for itself: other 3/4 austerity, austerity,austerity – the new Triple-A
Where are those banking reports – need something to cheer me up! … while the present Executive continue with its Resolution policy of winding down the entire Irish Economy & Society.
Drat! No sign of those banking reports …
Tuesday, June 8, 2010 via NakedCapitalism
Satyajit Das: Even More Crunch-Porn and Crash Lit
But Satyajit Das in good form this morning …. cites P.J. (not Kevin; any relation?) O’Rourke who described economics as “an entire scientific discipline of not knowing what you’re talking about.” One can only quibble with the word “scientific”. & reviews all the recent ‘blockbusters’ ……..
Worth a good scan:
Feeling better already …..
(BN) *FRIEDEN SAYS EURO-AREA RESCUE FUND TO HAVE CAPITAL OF EU31,000
Eh, whats the leverage ratio on that?? Makes NAMA look positively conservative in comparison…
Leverage only matters if you are being regulated!
It might be useful to read the EU blurb with this BBC graphic in view. Ireland and Greece leap out under ‘deficit’.
Have to say, from the media report(s) I thought there was something much stronger than what the text actually contained.
It’s off thread but this was the really interesting statement of the day:
“THE FORMER chief executive of Irish Life & Permanent has questioned the role of the Department of Finance, Financial Regulator and Central Bank in the reporting of his company’s controversial €7.45 billion transaction with Anglo Irish Bank, which propped up the bank.
ILP’s deposits, which are now the subject of two official investigations, falsely [many are using another f word] bolstered the bank’s financial health in the run-up to its collapse.
In a surprise move, Denis Casey, who resigned as ILP chief executive in February 2009 over its financial support for Anglo, has in recent days submitted a sworn statement to investigators examining the deposits.
In his statement – seen by The Irish Times – Mr Casey said the department, the regulator and the Central Bank were aware of the transactions before Anglo published the financial results.
We are all aware there is a cover up in progress. But now to continue denying it would be laughable:
“Mr Casey said he was providing the statement as investigators have yet to contact him about the matter, despite the deposits being under investigation for 17 months.” !!!!!!!
So what will civil society do now it’s clear beyond any doubt that even our investigators are engaged in a secrecy maintenance operation?
(Report by Simon Carswell & Stephen Collins).
It is also clear that the exhortations to wear the green jersey (over your head) date back to the bank guarantee. No wonder we’re in such a mess.
May I ask, just scrolling through the posts and the document (link is broken for me btw http://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/en/misc/114978.pdf, but does the Stability and Growth Pact really allow for surveillance to the extent of Euro pre-approval BEFORE national parliaments get a look in?
Because that is all that has really been said as far as I can see, “strictly implement the surveillance framework by the SGP”.
Otherwise it has been a remarkable turn of face from where we were two weeks ago when the French, Irish, and even German opposition parties were dismissing without the question of European approval for budgets.
*REGLING APPOINTED CEO OF EUROPEAN FINANCIAL STABILITY FACILITY
Well, at least we can’t claim they didn’t get someone pretty decent to do our banking investigation…
Yes – been following this one. You are ‘on the ball’ – But, of course, Spectacles and the Board were kept in the ‘dark’ – as were, apparently, the Board of DDDA, ……… neat little trick to get the ‘Golden Circles’ off the hook – think we will accumulate a lot of this on various boards …. forgetting the basic tenet of corporate governance that the ‘buck’ stops with the board – not around here ………….
Yes – off-thread – excuse us mere serfs …………..
The Governor, apparently, does not hire ‘fools’ …..
Rte are reporting that EU Finance Ministers agree to budget vetting as well yet the UK says:
“The budget will be presented to parliament first. There is no question of anyone other than MPs seeing it first,” said Mark Hoban, financial secretary to the UK Treasury”
I am very confused now, from where I sit nobody has agreed to anything of the sort.
The Special Purpose Vehicle sounds like the international finance equivalent of the Formula 1 safety car that gets deployed whenever a race is hit by a bad accident or heavy rain!
EU vs Eurozone maybe? That’d explain why the UK wouldn’t have to play show and tell with the other kids…
I think that much of the coverage of the Central Bank/Financial Regulator’s failings suffers from a fatal misunderstanding. They didn’t fail in their job as far as their political masters were concerned – they completely succeeded. Failure, in the eyes of the people who appointed them and kept them in office, would have been to interfere with the bankers/politicians/speculators. Their job titles should have been “Central Non-Banker” and “Financial Unregulator”. If say Neary had been a semi-failure we would have had half the bubble (at least until FF/PDs made him petting zoo regulator and replaced him with someone who didn’t regulate). We had the Japanese scale bubble we did because Neary and Hurley, as demanded by their political bosses, were total successes. Total failure for FF would have been to have had active regulation and no bubble whatsoever. The golden handshakes they got were because FF were fully aware they had just done their jobs. Not the job they had in legislation or by international standards but the job their employers wanted, which is the one which inevitably ends up being done.
Repeat after me: Neary and Hurley just did their real jobs.
@ Oliver and david
That’s a mighty reel but I think this is the waltz competition.
Poster Nipper on another forum quotes another Carswell bull’s eye in April:
“ALLIED IRISH Banks (AIB) and Bank of Ireland (BoI) were asked during crisis talks on the night the Government bank guarantee was introduced in late September 2008 how much they could provide in liquidity to Anglo Irish Bank, according to well-placed sources.
During emergency discussions with the Government and senior regulatory officials, both banks consulted their treasury departments shortly after talks began late on Monday, September 29th.
Both heard from their treasury units within hours and determined that they each could provide €5 billion in loans to keep Anglo float…
AIB and BoI both sought assurances from the Government that night that the €10 billion would be repaid that Friday ahead of the Government’s expected nationalisation of Anglo.
The following day, neither bank was contacted by the Central Bank, the Financial Regulator or Anglo in relation to the loans of €10 billion, or received any explanation as to why the loans weren’t needed.
Following the Government’s announcement of the system-wide deposits and funding guarantee early on September 30th, deposits flooded into the Irish banks.
Five months later it also emerged that Irish Life Permanent (ILP) provided €3.45 billion in temporary loans to Anglo on the day of the guarantee – in addition to €4 billion loaned by ILP to Anglo earlier that week – and that the two had also supported each other with liquidity earlier that year. The €7.45 billion in loans are now being investigated by gardaí.”
Have the government been purporting to investigate ILP, while not doing so at all, for activities they later encouraged AIB and BOI to take part in? The conclusion must be that our establishment are as bad as Greece’s but unlike the Greeks we’re too dumb and too gullible to realise it. We’re in denial about an out of control official Ireland.
It may be a waltz competition but the big issue is that the judging is dodgy. And as the depression, the Anglo black hole and the austerity measures show this is now affecting everyone, whether they want to acknowledge it or not. It is discussed here, on the currently most viewed thread on politics.ie:
And here is another investigation scandal:
*REGLING APPOINTED CEO OF EUROPEAN FINANCIAL STABILITY FACILITY
It’s part of the Eurozone’s new “know your (future) customer” rule.
You’d think our establishment would have a deep sense (well at least some anyway) of shame. They’ve turned us into the riches to rags story of Europe.
“Lawyers for the Director told the judge it was like ‘walking through a minefield’.
Senior Counsel Paul O’Higgins said the electronic material seized contained several million records and it was proving logistically difficult, if not impossible, to separate the legally privileged material without damaging the original data.
Mr O’Higgins said the Director of Corporate Enforcement, Paul Appleby, had asked the bank not to rely on legal professional privilege.
But he said when he (Appleby) was informed that the bank would be relying on privilege, he did not ask them why they would be doing this.”
????? Incredible. Appleby knew this was a state owned bank with state board appointees and he left it at that before eventually going to the courts??????
There is no credible reason for Appleby not to have gone straight to
A. The board of Anglo
B. And then to the Government
and asked them to withdraw this claim. There is NO rational reason for the courts to be involved. Why were Anglo management even making the claim of privilege? As the judge said:
“Mr Justice Peter Kelly said it was a curious state of affairs that the State-owned bank, was claiming privilege over material in relation to an investigation being carried out by an officer of the State.”
Here it is in brief:
The ILP deposits were part of an official cover up of the state of the banks.
There has been a cover up of this cover up ever since.
The investigation itself is a secrecy maintenance program The strategy of not even interviewing senior people is part of this.
We have an investigation that is a secrecy maintenance program.
Don’t read past page 12 of the politics.ie thread on the ILP deposit story.
Government troll at work.
Also discussed here:
Ahh, Sovereignty. A burden. Best shared amongst friends.
The Irish could not handle it and neither could the British!
So they got together to share out the spoils……
The Alphas will rule, the Betas will manage and the rest will do as they are told. Consume, borrow, vote. Be content. Learn what we say is acceptable. If it means less waste like bubbles, real wars, etc then it may be the best we can get!
Good work. Keep diggin …………….
Naw – neither a reel nor a waltz – checkin ooot the the cute-hoor-upper-echelon-two-steps man ………
You must be thriled that former FF senator & practising solicitor Aidan Eames has been appointed to the Board of Anglo.
There is no need to dig. This investigation, as Brendan Keenan told us, is a PR operation.
“There is no doubt about the levels of interest in the shenanigans at Anglo Irish Bank. The arrival of the gardai on the premises looks set to raise the media interest to something approaching hysteria.
But — whisper it quietly — it is not really all that important.
We are, after all, talking about alleged breaches of company law; normally a subject on which it would be impossible to excite any public interest at all.”
This investigation is wearing the green jersey. FF were under pressure and so concocted the line that our banking collapse was due to secret criminal activities. But in fact the key things, probably everything, that Anglo did officials and politicians were aware of. And there is no way officials and politicians will go to jail in this country whatever laws were broken. This is all stage managed for public consumption:
– The original raid was on the eve of the FF Ard-Fheis.
– The anniversary of this raid, and coverage about the lack of follow up, brought two arrests followed by swift releases.
– The continuing napalming of billions on Anglo generated more pressure. Hence the belated – but inexplicable – decision to look to the courts to raise privilege.
– The “strategy” of not talking to the senior bankers involved is part of it. It is designed to:
A. Make sure civil servants and politicians don’t take the fall, in so far as there is one, and the bankers do.
B. Make sure that the truth does not emerge for as long as possible.
After pinning it on the bankers FF blamed the regulators, then public servants, then they had Fitzpatrick arrested, now they’ll blame the regulators again.
The bubble told us our establishment was deeply tarnished. But the cover ups and the sham investigation with its theatre and concealment have totally blackened it.