Today, European Union finance ministers reached landmark political consensus on sweeping financial supervisory reforms aimed at preventing a recurrence of the 2008 financial crisis. In the plan, hailed as a breakthrough after months of inter-European negotiations, three new watchdog bodies with binding authority will be created: a European Banking Authority; a European Insurance and Occupational Pensions Authority and a European Securities and Markets Authority. In addition, a European Systemic Risk Board will be set up to monitor potential threats to the EU economy, to be chaired by the head of the European Central Bank. The finance ministers’ action follows last week’s provisional agreement between the European Parliament and the Belgian Presidency of the European Council, which augurs well for final passage when the Parliament formally votes on the measures September 22nd.
The Obama administration has started to deliver its promised new system of export controls on military-related technology. The goal of the reform is, as officials put it, “to build a higher fence around fewer, truly sensitive items.”
When the U.S. government led a bailout program of $700 billion in the wake of the 2008 financial crisis, the money was generally described as bailout funds for U.S. banks and other major financial institutions. But in fact, substantial amounts went to foreign banks, according to a congressional watchdog, the Congressional Oversight Panel. Headed by Elizabeth Warren, the committee has just issued a report highlighting this dimension of the Troubled Assets Relief Program (TARP).
The controversy about the harsh attacks on “immigrant crime” by French President Nicolas Sarkozy has spilled over into debates in the U.S. The influential New York Times lambasted the French leader for his comments singling out minorities. It was scathing about his threat to strip French citizenship from foreign-born naturalized citizens convicted of serious offences -- such as threatening the life of a police officer (or even pursuing Islamic practices such as polygamy or female circumcision). Such moves, the leading American newspaper said in an editorial, are “fanning dangerous anti-immigrant passions for short-term political gain.”
The Czech Republic and, more surprisingly, Slovakia, have announced plans to participate in the U.S. Ballistic Missile Defense (BMD) system in Europe by hosting parts of the network on their soil. Poland has already signed up as a site for deploying part of the planned system.
Two recent riots against police forces in France have once again brought to the forefront the thorny issue of the integration of marginalized minorities. In response to this violence and with an eye on the 2012 elections, President Nicolas Sarkozy has seized on the law-and-order issue that helped him win office three years ago. This time he has gone even further, announcing plans to strip their French nationality from naturalized immigrants convicted of attacking police or other authorities in France. His new stance combines tougher repressive measures with rhetoric lumping together crime and immigration, even legal. (In that sense, his view is more radical even than that of the Arizona governor who wants the police to detain illegal immigrants involved in an incident with the authorities.)
Italy has managed to largely avoid the media spotlight in the eurozone crisis, even though it is one of the so-called “PIIGS” (Portugal, Ireland, Italy, Greece, Spain) always listed as the weak links in Europe. But Greece’s crisis and now Spain’s worries have overshadowed the potentially even larger problem in Italy. After all, it’s the seventh largest economy in the world -- seven times larger than that of Greece. But it has problems, too. So, as one commentator puts it, Italy is the “largest of the vulnerable countries, and most vulnerable of the large.”
The International Court of Justice (ICJ) ruled Thursday that Kosovo’s declaration of independence from Serbia in 2008 does not violate any international law.
The verdict – that the step was legal – is a victory for U.S. and European policies and actions that led to Kosovo’s independence. This outcome has never been accepted by Russia or by Serbia, whose foreign minister reacted immediately with a vow that Belgrade would “never” recognize Kosovo’s unilateral declaration of independence from Serbia.
Jose Manuel Barroso, President of the European Commission, appealed Thursday for closer EU-U.S. ties in the wrenching economic crisis engulfing both sides of the Atlantic. “The transatlantic community is not living up to its potential. I think we should do much more together,” he said.
The French law banning Muslim full-face veils from anywhere outside private homes and mosques was passed by the lower house of parliament Tuesday, with only a single dissenting vote. The ban is a move supported by a large majority of people in other west European countries, polls show. But the measure is seen as controversial and intolerant by Americans.
The planned EU “diplomatic service” won final formal approval by the European Parliament in a landslide vote on July 8, clearing the way for the new corps – officially known as the European External Action Service -- to start work on December 1. This date means that the service will be set up within one year of its authorization by the Lisbon Treaty, sooner than many skeptics had predicted. This track record may bode well for the future of the service and its head, EU High Representative for Foreign and Security Policy Catherine Ashton, who has emerged with fresh stature after her success in speedily establishing this new corps.
The European Parliament has agreed to a new deal giving U.S. agencies access to bank data about Europeans' international transactions in order to combat terrorism. An earlier version of the accord between the U.S. and the European Commission had been blocked by the Parliament exercising its new authority under the Lisbon treaty. So the resolution now reaffirms a broader institutional accord on transatlantic cooperation to fight terrorist networking.