Britain's €3 billion rebate from the EU budget is "no longer justified," EU budget commissioner Janusz Lewandowski has said. "The British rebate has lost its original justification," Mr Lewandowski told the leading German daily Handelsblatt in an interview published on Monday (6 September). "The structure of the EU budget has changed substantially. Farm subsidies - the main reason for the rebate - have decreased, while the per-capita income of the UK has increased substantially since the 1980s."
Britain's €3 billion rebate from the EU budget is "no longer justified," EU budget commissioner Janusz Lewandowski has said.
"The British rebate has lost its original justification," Mr Lewandowski told the leading German daily Handelsblatt in an interview published on Monday (6 September). "The structure of the EU budget has changed substantially. Farm subsidies - the main reason for the rebate - have decreased, while the per-capita income of the UK has increased substantially since the 1980s."
EUOBSERVER / BRUSSELS - As EU Council President Herman Van Rompuy's economic governance task force reconvenes on Monday (6 September), the fiscal situation of many in the bloc remains parlous. Concerns of a double-dip recession echo across the Atlantic, and bond yields for the EU's more troubled countries stubbornly keep rising as if the promise made in May of a €750-billion eurozone bail-out should things go truly wrong had never been made.
EUOBSERVER / BRUSSELS - As EU Council President Herman Van Rompuy's economic governance task force reconvenes on Monday (6 September), the fiscal situation of many in the bloc remains parlous.
Concerns of a double-dip recession echo across the Atlantic, and bond yields for the EU's more troubled countries stubbornly keep rising as if the promise made in May of a €750-billion eurozone bail-out should things go truly wrong had never been made.
"By the end of the year it ought to become clear that the Bundeswehr will become smaller, but better." This is how German Defense Minister Karl-Theodor zu Guttenberg framed his plans to cut the German army by around a third last month. A similar refrain has been taken up throughout the NATO alliance, where growing state debts are putting increasing pressure on defense budgets, but defense ministers are at pains to ensure that security is not impaired. British Defense Secretary Liam Fox said in July that possible cuts to the country's nuclear deterrent are being considered, but insisted that any budget trimming must not put Britain at risk by weakening its armed forces.
"By the end of the year it ought to become clear that the Bundeswehr will become smaller, but better." This is how German Defense Minister Karl-Theodor zu Guttenberg framed his plans to cut the German army by around a third last month.
A similar refrain has been taken up throughout the NATO alliance, where growing state debts are putting increasing pressure on defense budgets, but defense ministers are at pains to ensure that security is not impaired.
British Defense Secretary Liam Fox said in July that possible cuts to the country's nuclear deterrent are being considered, but insisted that any budget trimming must not put Britain at risk by weakening its armed forces.
budget trimming must not put Britain at risk by weakening its armed forces.
He mentioned that one of his major projects had been to root out waste in the MoD. He prepared a report of recommendations that so excited the minister that he was asked to make a presentation to the Cabinet about some of the findings. He said that some of the examples of waste were so laughable that he had them "rolling in the aisles".
He also noted that, some years after the report, none of the recommendations had been implemented in any way. keep to the Fen Causeway
The Marine Corps provided the only solid number. It spent $50 million last year on its military bands, including $10 million to support the 130 elite musicians in the Washington-based Marine Band, known as "The President's Own," whose prime mission is to provide music for the White House. The Marines have another 600 musicians in 12 bands around the country, costing $35 million, according to a Corps spokesman. There are no comparative figures available for the overall costs of military bands in the Navy and Air Force, because they are carried as expenses for subsidiary organizations spread around the country and overseas. The Army, according to a spokesman, estimates that it spends about $195 million a year on its bands, but that does not include those of the National Guard. Altogether, the Army says on its Web site that it has 5,000 musicians, describing itself as "the largest and oldest employer of musicians in the country." Based on the Marine figures, total Defense Department spending could reach $500 million or more a year.
The Marines have another 600 musicians in 12 bands around the country, costing $35 million, according to a Corps spokesman.
There are no comparative figures available for the overall costs of military bands in the Navy and Air Force, because they are carried as expenses for subsidiary organizations spread around the country and overseas.
The Army, according to a spokesman, estimates that it spends about $195 million a year on its bands, but that does not include those of the National Guard. Altogether, the Army says on its Web site that it has 5,000 musicians, describing itself as "the largest and oldest employer of musicians in the country."
Based on the Marine figures, total Defense Department spending could reach $500 million or more a year.
REUTERS - U.S. President Barack Obama will announce on Monday a six-year plan to revamp the United States' road, railways and runways with a $50 billion up-front investment to jump-start job creation, the White House said. The plan is one of several several economic initiatives that Obama is due to unveil this week aimed at generating some desperately needed U.S. job growth and limiting predicted Democratic losses in Nov. 2 congressional elections. Struggling to persuade Americans that his economic policies are working, Obama will use appearances in Milwaukee and Cleveland this week to set the tone for the fall campaign.
(Reuters) - World stocks rose on Monday on hopes that the U.S. can avoid slipping back into recession, although the International Monetary Fund's chief economist warned of weak growth in both the United States and Europe. With U.S. markets closed for the Labour Day holiday, Friday's encouraging news about the employment picture continued to spill over onto trading on Monday.Some investors, particularly in Asia, were catching up with the U.S. jobs numbers, which were not as bad as some had feared. The slowing of the world's largest economy has been one of the major factors holding investors back over recent months.
(Reuters) - World stocks rose on Monday on hopes that the U.S. can avoid slipping back into recession, although the International Monetary Fund's chief economist warned of weak growth in both the United States and Europe.
With U.S. markets closed for the Labour Day holiday, Friday's encouraging news about the employment picture continued to spill over onto trading on Monday.
Some investors, particularly in Asia, were catching up with the U.S. jobs numbers, which were not as bad as some had feared. The slowing of the world's largest economy has been one of the major factors holding investors back over recent months.
REUTERS - As commuters prepared for travel chaos on Monday at the start of a series of strikes on the London Underground, management and unions traded blows over new safety claims. About 200 Alstom-Metro maintenance workers on the Jubilee and Northern lines began industrial action over pay on Sunday evening, with other 24-hour strikes due to take place on Oct. 2, Nov. 1 and Nov. 27. On Monday, up to 10,000 members of the Rail Maritime and Transport and white collar TSSA union, ranging from station employees to drivers, will put down their tools late afternoon at the start of four one-day strikes to protest 800 ticket-office job cuts.
About 200 Alstom-Metro maintenance workers on the Jubilee and Northern lines began industrial action over pay on Sunday evening, with other 24-hour strikes due to take place on Oct. 2, Nov. 1 and Nov. 27.
On Monday, up to 10,000 members of the Rail Maritime and Transport and white collar TSSA union, ranging from station employees to drivers, will put down their tools late afternoon at the start of four one-day strikes to protest 800 ticket-office job cuts.
(Reuters) - European Union finance ministers will try on Monday to agree more details of how to penalise EU budget rule breakers and underline the importance of keeping debt levels low. The ministers from the 27-nation bloc will meet in Brussels in what is known as the Task Force to discuss changes to EU budget rules, the Stability and Growth Pact, to prevent another sovereign debt crisis like the one triggered by Greece.But despite several meetings since talks began on toughening the budget rules in May, there have been few concrete results and frustration is growing over the lack of progress.
(Reuters) - European Union finance ministers will try on Monday to agree more details of how to penalise EU budget rule breakers and underline the importance of keeping debt levels low.
The ministers from the 27-nation bloc will meet in Brussels in what is known as the Task Force to discuss changes to EU budget rules, the Stability and Growth Pact, to prevent another sovereign debt crisis like the one triggered by Greece.
But despite several meetings since talks began on toughening the budget rules in May, there have been few concrete results and frustration is growing over the lack of progress.
Investment banks have reined in their worst pay excesses. But inconsistent enforcement of bonus rules in the United States and Europe means some are still getting away with bad behaviour. If banks and regulators can't agree common standards, they risk another political backlash. It's almost 18 months since the world's regulators agreed a common set of principles for bank pay. But the interpretation of those standards has been far from consistent. While the U.S. Federal Reserve has issued the institutions it regulates with broad guidelines, the European Union has passed a detailed directive, including a requirement that a proportion of any bonus should be paid in the form of contingent capital. Add in one-off levies like the UK bank payroll tax, and it's not hard to see why banks are struggling for a common approach. Investment banks have cleaned up their act to some extent. Most bonuses now include some deferred payment, often in the form of stock. This aligns bankers' incentives with those of shareholders, and discourages them from taking short-term risks that may blow up in a year or two. Multi-year guaranteed bonuses have almost entirely disappeared. However, there are plenty of signs that some banks are still ignoring the spirit of the new rules.
Investment banks have reined in their worst pay excesses. But inconsistent enforcement of bonus rules in the United States and Europe means some are still getting away with bad behaviour. If banks and regulators can't agree common standards, they risk another political backlash.
It's almost 18 months since the world's regulators agreed a common set of principles for bank pay. But the interpretation of those standards has been far from consistent. While the U.S. Federal Reserve has issued the institutions it regulates with broad guidelines, the European Union has passed a detailed directive, including a requirement that a proportion of any bonus should be paid in the form of contingent capital. Add in one-off levies like the UK bank payroll tax, and it's not hard to see why banks are struggling for a common approach.
Investment banks have cleaned up their act to some extent. Most bonuses now include some deferred payment, often in the form of stock. This aligns bankers' incentives with those of shareholders, and discourages them from taking short-term risks that may blow up in a year or two. Multi-year guaranteed bonuses have almost entirely disappeared.
However, there are plenty of signs that some banks are still ignoring the spirit of the new rules.
what?
Ireland's finance minister, Brian Lenihan, was in Brussels tonight in an effort to clinch a deal over the toxic Anglo Irish Bank while trying to calm financial markets' fears that the government bailout could bankrupt the country.After "constructive" talks with the EU competition commissioner Joaquín Almunia today he heads into a conference of European finance ministers tomorrow aware that Ireland's financial system has come under intense scrutiny from the financial markets.In a rare interview on the subject of the bank, Lenihan said he was confident that the €25bn (£21bn) already pumped into the bank could be absorbed by the public purse.
Ireland's finance minister, Brian Lenihan, was in Brussels tonight in an effort to clinch a deal over the toxic Anglo Irish Bank while trying to calm financial markets' fears that the government bailout could bankrupt the country.
After "constructive" talks with the EU competition commissioner Joaquín Almunia today he heads into a conference of European finance ministers tomorrow aware that Ireland's financial system has come under intense scrutiny from the financial markets.
In a rare interview on the subject of the bank, Lenihan said he was confident that the €25bn (£21bn) already pumped into the bank could be absorbed by the public purse.
Lenihan said he was confident that the €25bn (£21bn) already pumped into the bank could be absorbed by the public purse.
For the past few years (and, in reality, for decades before that), the government has tried to improve the nation's housing market by artificially inflating house prices. The mortgage-mod programs, the back-door bank bailouts, the Fed-subsidized mortgage rates, the $150 billion flushed down the Fannie and Freddie rat-hole--all these tactics and more have been designed to reduce monthly payments for mortgage holders and keep house prices high. .... But three years into the bailouts, people are finally throwing up their hands. As the administration tries to figure out what to do to save the Democrats in November, calls for a new form of housing action are emerging: STOP trying to keep house prices artificially high and just let prices fall. (See this article by David Streitfeld in the New York Times.) .... And what would this do? Well, in the short-term, if house prices fell to fair value (5% to 10% below today's level--see chart below), it would certainly lead to more folks walking away from their mortgages. It would also, thereby, lead to more bank writeoffs. But that's only fair. And the banks now have enough capital (and enough access to capital), so they'll be able to survive. Importantly, it would also allow a new generation of home buyers to step into the market and buy with the confidence that they won't get screwed if the government ever does decide to stop pumping up prices. (This is a big and justifiable fear.) Instead, new buyers will be able to look at long-term price-to-income and price-to-rent ratios and observe that they are buying houses at fair value or below--instead of at levels that are still artificially inflated relative to almost all non-bubble history. .... Here's a larger version of Robert Shiller's long-term house price chart. Note that prices (blue line) are still modestly above the long-term average:
....
But three years into the bailouts, people are finally throwing up their hands. As the administration tries to figure out what to do to save the Democrats in November, calls for a new form of housing action are emerging: STOP trying to keep house prices artificially high and just let prices fall. (See this article by David Streitfeld in the New York Times.)
And what would this do?
Well, in the short-term, if house prices fell to fair value (5% to 10% below today's level--see chart below), it would certainly lead to more folks walking away from their mortgages. It would also, thereby, lead to more bank writeoffs. But that's only fair. And the banks now have enough capital (and enough access to capital), so they'll be able to survive.
Importantly, it would also allow a new generation of home buyers to step into the market and buy with the confidence that they won't get screwed if the government ever does decide to stop pumping up prices. (This is a big and justifiable fear.) Instead, new buyers will be able to look at long-term price-to-income and price-to-rent ratios and observe that they are buying houses at fair value or below--instead of at levels that are still artificially inflated relative to almost all non-bubble history.
Here's a larger version of Robert Shiller's long-term house price chart. Note that prices (blue line) are still modestly above the long-term average:
Modestly! For the national median home price, perhaps. But for markets such as Los Angeles it could be another 20% or more. But the government can't levitate all prices forever --- I don't think. As the Dutch said while fighting the Spanish: "It is not necessary to have hope in order to persevere."
