European Union News - Internal Market

Flash estimate for the second quarter of 2011 showed an increase of Gross Domestic Product both in the Euro are and the European Union as a whole of 0.2% and 1.6% respectively, compared with the second quarter of 2010. In the first quarter of 2011, growth rates were +0.8% in the euro area and +0.7% in the EU.
 

According to the data released by Eurostat, the volume of retail trade grew by 0.2% in the European Union in July 2011. However, these figures show that in annual terms retail sales index decreased by 0.2% in both zones in July 2011.

Following the positive outcome of the quarterly review on the implementation of the stabilization programmes in both countries, the Council of the European Union adopted on September 2 two decisions in order to facilitate the release of the next instalments of financial assistance for both Member States. Accordingly, Ireland would receive 7.5 billion Euro and Portugal 11.5 billion Euro.

According to Eurostat, the statistical office of the European Union, in July 2011 compared with June 2011, prices in total industry excluding the energy sector increased by 0.1% in both the euro area and the EU. On the other hand, prices in the energy sector gained 11.9% and 13.8% respectively compared to July 2010.

Eurostat, the statistical office of the European Union published the latest data with regard unemployment in the EU. The EU27 unemployment rate was 9.5% in July 2011, unchanged compared with June. It was 9.7% in July 2010. The euro area seasonally-adjusted unemployment rate was 10.0% in July 2011, unchanged compared with June and the same month in 2010 it was 10.2%.

The Economic Sentiment Indicator (ESI) declined by 5.0 points to 97.3 in the EU and by 4.7 points to 98.3 in the euro area. This was produced due to losses in confidence which is particularly marked in services, retail trade and among consumers.

According to the European law enforcement agency, Europol, the volume of illegal waste shipments increased due an exceptional ‘low risk – high profit’ margin for crime organisations. In the EU, the illegal trafficking of waste is particularly rising between countries in North West and North East Europe.

The ECB President Jean-Claude Trichet met with MEPs on 29 of August at the European Parliament in order to explain the recent measures taken in response to the intensification of the crisis early August. In addition, the MEPs highlighted that the economic governance 'six pack' remains the base on which to build long term economic stability

The President of the European Bank for Reconstruction and Development, Thomas Mirow, stressed the importance of combating the crisis by creating the right environment for sustainable growth and greater harmonisation of economic and financial policies. He also argued that the crisis is not simply a fiscal problem.

A European project has discovered how to increase the data transfer rate between electronic ID documents and readers. Therefore, the future use of electronic ID documents on the Internet is becoming a reality. In addition, the technology developed will also cut administrative expenses, boost the level of security of future electronic ID cards and passports, speed up data transfer between ID document and reader device, and make it easier for users to use electronic services.

The annual growth rate of the broad monetary aggregate M3 stood at 2.0% in July 2011, compared with 1.9% in June 2011, as announced by the ECB. Regarding the main components of M3, the annual growth rate of M1 decreased to 0.9% in July 2011, from 1.2% in June. In addition, the Governing Council of the European Central Bank (ECB) has decided, in agreement with the Bank of England, to extend the liquidity swap arrangement with the Bank of England up to 28 September 2012.

The European Commission has cleared acquisition under the simplified merger review procedure of Lubrizol, a US specialty chemical company by Berkshire, a US company which is engaged through its subsidiaries in diverse business activities.