European Union News - European Union

Economic and Financial Ministers of the EU reached an agreement on the so-called "CRD 4" package, which amends the EU's rules on capital requirements for banks and investments firms. The negotiations with MEPs will aim for adoption of the package at first reading, if possible by June 2012. For its part, MEPs already stressed that bank capital requirements must be strengthened to make banks more risk-resilient and the risk weighting of loans to small firms must be reduced to facilitate lending to the real economy.

The Economic and Monetary Affairs Committee adopted two texts with a slim majority stating MEPs position on the economic governance "two pack". The vote was not without acrimony as centre left and centre right groups were divided on whether the timing was right for a vote. Thus, a decision was then taken not to open negotiations with the Council and instead turn to the plenary to test the level of backing of the whole house.

The Spring forecast 2012-13 published by the European Commission shows that the EU economy is estimated to be currently in a mild recession, following the output contraction in late 2011. However, it is expected an acceleration in global growth, and thus it is foreseen a slowly recovery in the second half of the year on.

Ministers at the Education, Youth, Culture and Sports Council meeting adopted the decision which officially states Donostia-San Sebastián (Spain) and Wrocław (Poland) as European Capitals of Culture for 2016. According to the Council, the cities chosen must demonstrate current involvement in European artistic and cultural life, alongside their own specific features.

The Communication on State Aid Modernisation (SAM) adopted by the European Commission proposes focusing state aid policy on facilitating well-designed aid targeted at market failures and objectives of common European interest. It sets objectives of an ambitious reform package. The main elements of the reform shall be in place by the end of 2013.

The European Commission launched on the Europe Day the broadest public consultation ever and asks citizens to set future agenda. The consultation will be open for four months during which time the public will be asked about the obstacles they face in exercising their rights as EU citizens, be it when travelling in Europe, when voting or standing as a candidate in elections or when shopping online.

The Erasmus Programme registered an 8.5% increase in the 2010-11 academic year – a new record , compared to the previous year. In addition, the three most popular destinations for students in 2010-11 were Spain, France and the United Kingdom. Spain also sent the largest number of students abroad, followed by France and Germany.

The EU reached an international agreement to update the Gothenburg Protocol according to a joint statement by the Danish EU Presidency and Commissioner Potočnik which welcomed this new agreement. There is also agreement to act on so called 'Black Carbon', a pollutant with short-lived climate forcing characteristics.

European regions and cities request a place-based approach to the thematic concentration of resources, a stronger flexibility in the definition of the funds allocation and clear rules for the involvement of regions and cities in defining operational programmes and partnership contracts through the four opinions adopted in plenary session by Members of the Committee of Regions.

The draft budget for 2013 presented by the European Commission freezes expenditure because the increase of commitments is at the level of inflation, cuts its staff by 1%, and it proposes a 6.8% increase in the level of payments aimed at, according to the Commission, contributing directly to growth and jobs in Europe. However, this proposal does not take into account the costs of Croatia joining the EU in July 2013.

The General Affairs Council meeting ended with an agreement on the new rules for EU cohesion policy of the 2014-2020 period. However this first agreement is pending on the European Parliament's position in first reading. Overall, Council's position is aimed at strengthening results orientation and improving the quality of cohesion spending.
 

The European Parliament approved a resolution which calls on the European Commission to propose a Seventh Environmental Action Programme (EAP) as soon as possible, and MEPs also ask that the Programme must take steps and set targets to protect the EU's environment and spur more efficient use of energy and natural resources.