… fell to 116 dinars against the euro, forcing the the country’s central bank to intervene and spend €80 million of its reserves.

The domestic context in Serbia following a presidential election on 20 May has contributed to this steep decline in market confidence –

Investors moved en masse to offload the currency, [...] in the wake of the failure of the Tadic coalition government, which had come to embody the country’s aspiration to enter the European Union, and the surprise victory of right-wing leader Tomislav Nikolic, who is now experiencing difficulties in forming a government.

Belgrade is also largely dependent on “foreign banks based in EU countries, many of which are Greek and Italian.” This is one of the main reasons for concern over the prospect “of another credit squeeze in the region,” notes the French daily.

“What will become of the European Union?” wonders The Economist.

For the influential business weekly, the choice is simple, either a break-up of the euro, or a move towards closer European integration – even if only ”technocratic and limited”:

 

For two crisis-plagued years Europe’s leaders have run away from this choice. They say that they want to keep the euro intact – except, perhaps, for Greece. But northern European creditors, led by Germany, will not pay out enough to assure the euro’s survival, and southern European debtors increasingly resent foreigners telling them how to run their lives.

But if the EU’s leaders were to choose a euro break-up –

… banks and firms across the continent would topple because their domestic and foreign assets and liabilities would no longer match. A cascade of defaults and lawsuits would follow. Governments that run deficits would be forced to cut spending brutally or print cash.

This is one of the reasons for which, the august journal “reluctantly” concludes that “the nations in the euro zone must share their burdens.”

Saving the euro is desirable and it is doable. One question remains: will Germans, Austrians and the Dutch feel enough solidarity with Italians, Spaniards, Portuguese and Irish to pay up? We believe that to do so is in their own interests. The time has come for Europe’s leaders, and Mrs Merkel in particular, to make that case.

... over 80 percent of Roma respondents live in households at risk of poverty, less than a third bring home a salary, and only 15 percent have been to high school, against 70 percent for the rest of the population.

The study concludes that Roma are “not sufficiently aware of the rights guaranteed under the legislation of the European Union”. Thus, only 40 percent of Roma know the laws that prohibit discrimination against ethnic minorities looking for work.

The Commission plans to impose a tax on financial transactions throughout the EU, at a rate of 0.1 percent on stocks and bonds and 0.01 percent on other financial products. [This] “could generate up to 57 billion euros, if applied across the EU.

Which is not a sure thing, the paper notes –

Nine countries, including Germany and France, are defending bringing in the tax, but others, like Britain, are opposed because they fear it will provoke financial activities to relocate.

Britain’s Prime Minister has also erupted in “fury” at the summit, writes the Telegraph, quoting David Cameron –

The Financial Transactions Tax is a bad idea. It will put up... the cost of people's pensions, it will cost many, many jobs. It will make Europe less competitive and I will fight it all the way.

This book is a “disgusting litany of false arguments”, announces Frankfurter Rundschau. The German daily notes that Sarrazin, who worked for the IMF, the German Ministry of Finance and the Bundesbank, should have some mastery of the subject, which “he fails to address” –

Sarrazin constructs an opposition between an efficient Northern Europe  and a chaotic South   –  between workers and layabouts, and whites and dark-skinned people. He refers to countries which he claims behave irresponsibly as “Club Med” states. And where does he situate France? In this Club Med! […] As an adversary of the euro, he puts forward a theory as to why Germany has been pro-European until now: the Germans’ persistent enthusiasm for Europe can only be explained by “the moral deadweight of the Nazi era”. This is a book of lies. […] Let’s hope it rots on booksellers’ shelves!

The affair, which has already been reported by EUobserver, concerns the British firm G4S-UK, which, contrary to expectations, won a 10 million euro contract with the European External action Service to protect EU staff and premises in Libya. Rue89 remarks that the deal raised eyebrows because, unlike its competitors in the call for tenders, the Hungarian firm Argus and the British Canadian Garda World, G4S-UK “had no track record of protecting European delegations”.

The French news website argues that the affair highlights a problem of conflict of interest in the EEAS, which is managed by Britain’s Catherine Ashton –

Some [...] suspect Great Britain of misusing its influence in the EEAS to favour the main private military companies in the UK.

If the radical left-wingers win the 17 June elections and stick to their promise of scrapping the €130 billion bail-out and its austerity requirements, Greece could still stay in the eurozone without financial aid if it introduced a parallel currency. The "Geuro" would come as promissory notes, a form of government-issued debt that can be sold on. It would devaluate sharply against the euro but would allow the government to buy itself some more time to carry out reforms and pass budget cuts... [...] One pre-condition for the scenario to work would be that aid would still come from other euro-countries and the International Monetary Fund [...] Cash-strapped Greek banks would also need to be rescued by creating a European "bad bank" – according to the Deutsche Bank projection.

‘In 2010 and 2011 half of China’s imports from the European Union came from Germany, which is up from 39 percent in 2000.’ This reinforcement of Germany’s significance as a major trading partner of China has also helped bring European business to China. The fact that Europe has not lost market share in China in the last ten years – unlike Japan and the United States – is largely thanks to Germany. Moreover, Germany is one of those few European countries to enjoy a trade surplus with China. Buoyed by the strength of trade relations built up between Beijing and Berlin, the EU therefore has no choice but to weigh up this new economic partner.

That privileged relationship, however, risks harming the relationship between China and the EU, as it is primarily a bilateral one. “The Chinese want a recovery in Europe to be led by the Germans,” writes Le Temps of Geneva. Looking at the conclusion of the study, the Geneva daily warns -

The only possible balance must be through the EU. To convince the Germans to remain good Europeans in this area, however, a strategic partnership between the EU and China must be developed, and with some urgency.

Having said that, France’s European partners should not “conclude that François Hollande’s foreign policy will be tainted by anti-European sentiment. This would be a mistake”, argues Le Monde, which nonetheless draws attention to what it describes as “an unavoidable political reality” –

… the French do not trust Europe. But more often than not, their Eurosceptic mood and occasional support for a policy of national withdrawal is fueled by a conviction that European integration will pave the way for all of the ills of economic liberalism. Of course, Europe is a market: this is one of its strengths, the secret of its appeal, and the driving force behind its competitiveness. But it should also be a political and civilisational project. M. Fabius is not the worst choice of politician to speak on behalf of such a Europe”.

In any case, remarks Libération, which points out that Fabius and Cazeneuve are “not the only Eurosceptics in the French cabinet” –  

François Hollande has appointed them to posts where, they will have little real influence on European affairs – ‘a field reserved’ for head of state, which will be effectively managed by the Elysée.

Following 9 days of discussions, Greek parties have not reached an agreement to form a government. Therefore, new elections will be held on 17 June, organised by the transition cabinet headed by the President of the State Council, Panayiotis Pikramenos.

“After the vote, the country is in the red”, worries I Kathimerini. The daily further notes that even if support is growing for Greece to abandon the single currency, “Merkel and Hollande want Greece to remain in the eurozone.”

“International alarmists' forecasts have come true” laments To Ethnos headlining with “Elections in a minefield”. "The country has reached an impasse. The parties now need to present clear solutions to the country’s problems,” among which are recession at 6.2% in the first quarter and unemployment at 21%.

For To Vima, the new elections will be –

a referendum with Antonis [Samaras, the leader of New Democracy, right-wing] against Alexis [Tsipras, the leader of Syriza, the Coalition of the radical Left], the right against the Coalition of the radical Left, the pro-Europeans against the rest.

However, Ta Nea hopes that this political crisis –

will be a chance to revive and restructure Greece’s social democracy. The two traditional parties [New Democracy and the socialists of Pasok] should draw some lessons from their failure.

"The ECB will carry out an audit of the Spanish banking sector," Cinco Dias reports. The European Central Bank decided to "cooperate with the government" in the reform of the Spanish banking system, especially concerning the valuation of assets and the creation of a "bad bank" charged with liquidating toxic real estate assets.

This "unprecedented decision" comes a month after the second reform of the banking sector and in the midst of a financial storm in Spain caused by doubts about whether Greece will remain in the euro zone. The business daily adds -

The Government needs to accept the truth that ... neither Europe nor the international markets trust Spanish banks, and put measures in place to support them.

The ECB audit, which will be completed in two months, has already reached its first conclusion, says the newspaper: it reflects the "deep mistrust of the role played by the Bank of Spain" in taking back the management of the banking sector reforms. However, it adds -

[In terms of] convincing institutions and investors of the seriousness of Spain’s efforts to clean up its act and ensure the solvency of its banking system, ECB cooperation may become a valuable asset rather than a constraint.

The unknowns concern the willingness of the new president to cut spending ... and also François Hollande's ability to change his position on Eurobonds and alter the role of the ECB.

However, Anne-Marie Le Gloannec, says "some compromises seem possible: the treaty [the fiscal pact] will not be renegotiated but rather, they will agree a pact on structural growth, both for Europe and for France, which François Hollande has already broadly sketched."

The two leaders will "become closer", adds La Croix, saying -

Principles first: in a united Europe, nothing is possible if France and Germany disagree. Pragmatism, too... The political crisis in Greece means that we cannot afford to get lost in quarrels over principle. A little realism is required about the inner workings of each country.

From the German perspective, Süddeutschte Zeitung asks  -

Is this the end of the Franco-German partnership? Not at all! Hollande will be moderate, Merkel will move. ... François Hollande does not have the vision of Napoleon or Mitterrand.

In another comment piece, the daily adds that François Hollande is -

a new chance for Merkel. [They] will be remembered as the people who ensured the survival of the euro or who masterminded its demise. They are forced to succeed from their first meeting. This pressure should give hope to all of Europe.

The eurozone seems not to be sufficiently equipped to face the consequences of a Greek default. According to the Financial Times, “Fears that the euro zone’s firewall will prove insufficient to shield Spain and other embattled countries against the effects of a possible disorderly Greek exit from the currency union hit European markets on Monday.”

Spanish and Italian 10-year borrowing costs shot up to their highest levels this year, whilst German 10-year bonds yields hit a record low, exacerbating the differences in borrowing costs between European countries to a new high. European stock markets also suffered their largest one-day drop in three weeks.

Aggravating these problems, Moody’s downgraded 26 Italian financial institutions by one to four notches, on Monday night and the cost of insuring against Spanish default hit a record high.

The financial firewall – the European Stability Mechanism – is a  500bn rescue system set up by European leaders. Some analysts are questioning whether this will be sufficient to rescue the larger economies at risk, such as Spain and Italy. Luke Spajic, a senior fund manager at Pimco bond investors told the Financial Times –

It’s looking alarming right now. The market is effectively trying to price a disorderly exit for Greece.

The FT added that calls were mounting for decisive action from European policy makers to avoid more systemically important countries being "dragged down by concerns over Greece."

With the headline “SPD triumph in North Rhine-Westphalia as CDU is routed”, Frankfurter Allgemeine Zeitung reports on the results of the 13 May election in Germany’s most populous state, which saw Angela Merkel’s party, and local party chairman Environment Minister Norbert Röttgen, lose 8% of the vote, which was snapped up by the social-democratic SPD, the Greens and the Pirate Party. The vote is the latest in a series of disappointments for the Chancellor’s office and the CDU, which has been on a losing streak at the polls since the start of the financial crisis in Europe.

For the Frankfurt daily –

The theme of debt reduction, which already figured large in the CDU’s failed campaign in Schleswig-Holstein state elections, will only attract votes if it is presented in a credible manner. The Environment Minister, who banged on about savings and cost-cutting while advocating extremely costly adjustments in energy policy, is the embodiment of an inconsistent approach to this theme. Furthermore, it was contradictory to insist on “Greek conditions” and to simultaneously announce that Germany has never been better off. Finally, the CDU assumption that voters are virulently opposed to debt appears to assume that the French and the Greeks inhabit a completely different planet.

On this point, in France Le Monde argues that the result of the German vote “is bad news for the German Chancellor and good news for François Hollande, who will meet Angela Merkel on 15 May in Berlin, immediately after his official inauguration”.

In recent weeks, Mr Hollande has become the leading European exponent of a growth strategy to overcome the euro crisis, while Mrs Merkel has continued to advocate budgetary rigour as the only possible foundation for “sustained growth”. The success of Mr Hollande has prompted high expectations in EU states struggling to cope with the debt crisis, and the ideas he has proposed have also attracted support in the ranks of the SPD on the other side of the Rhine. Mrs Merkel is aware of this, and the blow of Sunday’s election will be a further encouragement for her to be more flexible on the issue of a growth pact.

Given the persistence of the political stalemate in Greece and the risk that the debt crisis facing the country could bring down the single currency, Der Spiegel takes a clear position: "Farewell Athens" says the Hamburg-based weekly on its front page, explaining "why Greece should leave the euro now".

Echoing German concerns about the ability of the Greek political parties to form a government after the elections on May 6, Der Spiegel explains that "for Berlin, the situation in Greece is reminiscent of the Weimar Republic" and evokes the spectre of the regime that emerged in Germany after the First World War. With its stability undermined, it became a breeding ground for Nazism-

The so-called “shame'”of the Germans at [the conditions imposed by the] Versailles Peace Treaty seems to the Greeks to be echoed in the objectives of the financial recovery conditions demanded by Brussels. As in 1920s Germany, it is the extremist parties who benefit.

While it would be desirable for Greece to leave the euro zone, Der Spiegel notes,

Nobody can force the Greeks to leave the euro. But it is clear that it would be in their own interest. ...The exit of Greece from the euro zone is the only chance for the country to recover. The Greeks would have their own currency, that they could devalue. This would mean imports would be more expensive and exports would be cheaper ... Solidarity between European countries is not tied to membership of the euro, and this is why other countries must help Greece with its huge debts.

The weekly puts forward another argument: The departure of Greece from the monetary union "would be a strong signal to other bankrupt countries: you don’t blackmail Europe".

The main reason for this vote, European Voice says, is the announcement on May 9, of the departure of the president of the EFSA, Diana Bánáti, who stepped down to-

rejoin the board of the International Life Sciences Institute Europe (ILSI), a research and advocacy group. MEPs had asked the European Court of Auditors to investigate alleged conflicts of interest at EFSA, including Bánáti's links to the food industry.

Parliament's decision was welcomed by Monica Macovei (European People’s Party), a Parliamentary rapporteur for financial practice in 2010, who is often praised for her role in the fight against corruption. "Transparency and proper management of conflicts of interest have become vital for governance and for citizens. They must become an important criterion in budgetary expenditure procedure for all EU institutions,” she told the Bucharest-based daily România liberă.

European Voice adds, "The three agencies have until September to provide fuller explanations of their spending in 2010, with the Parliament voting later in the autumn on whether to approve or reject their accounts.”

"The system is disintegrating" warns l’Espresso, after the first round of partial municipal elections held on May 6 and 7. Support for the right-wing parties, who were the victors in the last elections in 2008, collapsed and candidates from the Northern League and the People of Freedom were knocked out in many cities. But it is not the centre-left that benefitted: the protest vote mostly went to Beppe Grillo’s 5 Star Movement. By obtaining more than 10% of the vote in many cities, this new political phenomenon could grab control of several town halls.

A former top comedian famous for his political rants and the writer of a popular blog, Grillo, 64, founded his party in 2009, on the wave of a series of performance-meetings, in which he railed against several political and financial scandals and the vices of the "caste", as the Italian ruling class are nicknamed.

Like all protest movements, Grillo’s brings a positive 'winds of change' message," notes l’Espresso,

but he also voices the demagogue spirit of those who dream of toppling Mario Monti, his government, its taxes and its austerity without growth.

Corriere della Sera also echoes this sentiment:

Certainly, Grillo is a performer whose torrential tirades appeal to both Poujadist sentiments and anti-political ones... But his programme is full of suggestions: from waste management to the refusal of easy growth based on real estate, through to transparency in administration and Internet usage in line with the levels of western countries.

“How much longer?” wonders the Die Zeit headline over a picture of Angela Merkel, who no longer has many friends in Europe at a time when she is about to undergo a fresh electoral setback in 13-May regional elections in North-Rhine Westphalia. Arguing that virtually all of Germany’s chancellors have clung on for too long, Die Zeit editor Bernd Ulrich insists that now is the time for a look back over the Merkel years.

Simple and without any experience of speech making, the Protestant pastor’s daughter, who was born in East Germany, succeeded in establishing a rapport with the entire nation, and especially with West Germans whom she judged to be “spoiled, as well as a little cowardly, and lazy”. As for the West Germans themselves, they were soon to be “merkelised” – caught up in cult that worshiped her supposed weaknesses of sobriety and a lack of glamour. And it was the euro crisis that marked the high point of this transformation. As Ulrich points out-

In 2005, Merkel felt she had to give Germans a boost. Today she has to convince her voters to help others, to keep a clear head, and most importantly, to continue their wise and zealous consumption. Her policy has been completely reversed. The question is: has she completed her mission in Germany? Has she migrated to Europe? [...] Were it not for German normality, and the fact that it is protected by an ultra-normal chancellor, Europe would have been plunged into chaos ages ago.

Far from imagining an imminent end to the Chancellor’s career, Ulrich concludes-

It may be that the German Merkel is now in decline, while the European Merkel is still at the height of her powers. Perhaps we no longer need her here, but rather in Europe. [...] She is only 57 years old, and is thus a woman politician with a future. However, where exactly that future lies remains to be seen.

At a time when "pensions and labour laws are violated and while demonstrations and riots spread from one member country to another" the only contribution that the manifesto proposes to rebuild the Union from the bottom up consists of "having the right to a sabbatical year of voluntary work in another EU country" quips the newspaper, which then asks:

Is the only response from these friends of Europe, when the Union is shuddering like the Titanic, that we must spend a little more time together so that we feel European?

And the newspaper concludes in the same tone: "It's probably no coincidence that this initiative is supported by the Allianz Group [a German insurance company] – one of Greece's main creditors."

After a worrying time about this 'renegotiation' European officials are saying today that they are now willing to help the French president complete the treaty of fiscal discipline through a growth initiative. Indeed, the 'claims' made by François Hollande reassured Brussels, because the projects already underway continue.

Les Echos adds that the President of the European Commission, Jose Manuel Barroso, said that he is happy to benefit from the opportunity created by the arrival of François Hollande to encourage a boosting of investment, provided it does not go back on the necessary deleveraging.” However, the paper warns:

This sudden urge to increase growth projects, however, risks clashing with the reality of public finances. For the EIB to recapitalise, 10 billion euros must be found, while in order to reallocate unspent structural funds, the states would have to transfer to Brussels the 82 billion they promised but have yet to hand over due to delays. And that is without including the 80 billion euro bill for building up capital for the future European Stability Mechanism (SPM). (...) Without cash in the coffers, the growth debate is about toeing a fine line between budgetary discipline and plunging into recession.

the Achilles heel of Spanish banks. Toxic assets due to real estate continue to rise, and there are more and more buildings on banks' balance sheets that have been acquired as a result of unpaid loans.

"Is Germany to blame for the housing bubble in Spain?" in turn asks ABC. The newspaper quotes a report from a Japanese bank, Nomura, which states that German and French banks had a role in the current situation-

the policy of low interest rates that the European Central Bank (ECB) applied in the years preceding the crisis has helped the moribund German economy to recover, but it was also a decisive factor that caused housing bubbles in peripheral European countries, [...] exacerbated by capital flows from the German and French banks.

To address the risk of bankruptcy of banks exposed to toxic assets related to real estate, the government "requires [the banks] to put aside larger provisions" for such credits, concludes El País.

“Poland speaks up for Tymoshenko”, Gazeta Wyborcza headlines as Kiev has postponed a central European regional summit that was to be held on 11-12 May in Yalta. The main factor behind the decision is the growing scandal surrounding the jailing and alleged mistreatment of former Prime Minister and opposition leader, Yulia Tymoshenko. This has caused eight European leaders to refuse to attend the summit and provoked calls in Germany and elsewhere in the EU for the boycott of the Ukrainian matches of next month’s Euro 2012 football championships. However, Tomasz Nałęcz advisor to the Polish president Bronisław Komorowski thinks that boycotting the tournament in Ukraine would be counterproductive -

We shouldn’t boycott [the Euro 2012], but go to Ukraine, bring some pleasure to millions of Ukrainians and simultaneously do something tangible for the release of Yulia Tymoshenko.

Polish president Bronisław Komorowski is going to appeal on May 9 to his Ukrainian counterpart, Viktor Yanukovich, for the law to be changed and Ms Tymoshenko’s sentence repealed. Meanwhile, on May 8 Ms Tymoshenko suspended her hunger strike, which she had started on 20 April, and was taken to a hospital in Kharkiv where she will be treated by a German doctor. The former Ukrainian PM is serving a 7-year prison sentence “for signing an allegedly unfavourable gas trading agreement with Russia in 2009”.

Le Figaro lists the facts that will inevitably lead to a show of force between Angela Merkel and the French President-elect:

Berlin is clearly irritated by the Hollande team's repeated calls to renegotiate the fiscal pact in order to add a section on growth. Seeking to reassure the chancellor's entourage on this point, advisors to the socialist candidate hinted that these were just 'campaign promises'.

The chancellor knows that François Hollande's situation does not allow for much room for manoeuvre and that he will "seek to impose himself at all cost in order to score points," Le Figaro writes –  

Yet she should not yield on the obligation to sign the treaty as is, even if it is resubmitted later. It would thus be up to the French president-elect to take the first step and to sign the pact as it is. A move that would be counter to the campaign waged against austerity in Europe.

Nonetheless, notes Le Figaro, the two leaders have some points in common. "The only good surprise, when the chancellor greets the French president-elect in Berlin, could be that of a meeting" between two leaders who have demonstrably "normal and humble personalities".

Far from being anecdotal, this personal link is the foundation of trust which allows Paris and Berlin to overcome their differences. This could lead to a consensus that would draw Europe along in the wake of the Franco-German team. If Hollande and Merkel get off on the right foot, everything is possible.

In Berlin, the Tageszeitung has strong doubts that François Hollande will get very far with his plans to favour growth. Certainly, the paper notes, several Brussels heavyweights eyeing José Manuel Barroso's post as EU Commission chair, such as Martin Schulz, president of the Euro Parliament and Viviane Reding, the vice-chair of the Commission, were quick to agree with Hollande by pleading for a growth pact. However,

...in the end, this is a classic Brussels compromise. A hand is extended to the new arrivals to better draw them in. For Brussels, a totally watered-down growth pact is very attractive because it would leave Chancellor Angela Merkel's budget pact unchanged. It would probably not even frighten the markets. That way everyone is satisfied: Merkel and Hollande, the citizens and the markets. MEP Elmar Brok (CDU) sums up the views of many European political leaders, saying, 'by June at the latest, Hollande should be back in line'.

Germany's leadership is thus not about to dim and, reinforced by the support of the markets, the free-market rhetoric from Brussels and Berlin resists change, TAZ says. Add to that the Greek crisis and

...the June EU summit could once again become a Greek summit, uniting Merkel and Hollande. As to what will become of the socialist's platform, heaven only knows.

The replacement of the Ungureanu government by the Ponta government  “and the handover of power during the electoral cycle is an unprecedented development in Romanian politics”, remarks Adevărul. Four months after the first anti-austerity demonstrations, Ponta’s programme will include measures that have “a populist potential”, explains the daily. These include civil service pay rises and pension increases. However the new prime minister’s mission will remain –

… the same as the brief for the Ungureanu government: management of day-to-day problems, the organisation of elections, and, of course, boosting the electoral appeal of the parties that put him in power.

"A party wavering in the North", began Die Welt in its summary of the power struggle played out through the ballot box in the regional elections in Schleswig-Holstein, an area which borders Denmark and is home to some 2.8 million people. The Christian Democrats (CDU) are effectively neck and neck with the Social Democrats (SPD), with 30.9% of the vote against 30.3% respectively. In 2009, the CDU obtained 31.5% of the vote with the SPD winning 25.4%. The Liberals (FDP) obtained 8.2% – compared to 14.9% in 2009 – and the Pirate Party scored its third success in recent months with a triumphal entry into the local parliament, with 8.2% of the vote.

Die Welt, a daily close to Angela Merkel, looked at the outcome in terms of the effect on the ruling coalition in Berlin, noting that the idea of an alliance between the SPD and Greens, such as occurred under the Social Democratic Chancellor Gerhard Schröder, is becoming increasingly unlikely, because "many people are hoping for a grand coalition between the SPD-CDU".

Suggesting a fiscal union could come about within ten years, Mr Draghi said this would involve the transfer of sovereignty from member states to a central authority.” Such would be the political dimension of the “growth agenda” according to Draghi.

In the view of Le Figaro, the “Growth Pact” promoted by Draghi is expected to balance the “Fiscal Pact” adopted by 25 of the 27 member countries to redress their finances. This growth requires “structural reforms to 'facilitate the work of entrepreneurs’”, notes the French newspaper, adding that “the head of the ECB summed up in three words his doctrine on the issue: 'Flexibility, mobility, fairness.’”

La Stampa believes that in fact “the single currency is trying to change its face” and that –

… if the promises of the last days were to be realised, there would begin a significant reversal of the fundamental functions between the EU and the member states: the responsibility for expenditure would go to the former, and control over budgets to the latter. [Through the European Investment Bank], the EU will fund major infrastructure, capable of boosting employment, at rates much lower than what Rome or Madrid, to say nothing of Athens or Lisbon, would have to pay.

Paraphrasing the words of John F. Kennedy, the signatories call –

on the European Commission and national governments, together with the European Parliament and national parliaments, to create a Europe "of actively employed citizens", and to create the financial and legal conditions for the establishment of a "Year of European voluntary service for everyone", as a counter-model to the “top-down” approach currently prevailing in Europe – a Europe of elites and technocrats. The goal is to democratise national democracies and to rebuild Europe behind the rallying cry: "Ask not ask what Europe can do for you, but what you can do for Europe – Make Europe!"

Wishing for "ordinary European citizens to come together to be their own bosses”, the authors of the document describe it as “an organic, naturally-occurring act” through which Europe will develop a new constitution “from the bottom up”.

The directive drastically tightens the definition of a bank’s capital reserves and hugely increases the level they are required to have, so that each institution has a cushion of funds to absorb violent economic shocks. According to the European Banking Authority, the hundred largest European banks would need to find some 485 billion euros of capital in order to comply with Basel 3.

The bill provides that each bank keeps 7% of its equity capital in reserve. The UK wants to increase this requirement to solidify its deposit banks. France, however, wants the funds involved in insurance subsidiaries to be excluded. Le Figaro says:

The debates will likely be very heated and may lead to adoption of the text being postponed until May 15. However, failure seems forbidden, as Europe needs to prove today that it is moving forward on the path to strengthen its banking system.

Last week, Le Monde reported that the European Commissioner for Internal Market, Michel Barnier, wants to ask banks how they have used the 1,000 billion euros, which were injected by the European Central Bank to avoid the credit crunch.

"Romanians have gained confidence in themselves, because the fall actually began in January," when Romanian "indignados"  began to protest against austerity measures, notes the Bucharest-based news website.

Neither the president nor the former ruling coalition have understood that Romanians were not simply looking for a change of people [a reshuffle took place on February 6]. But instead, a change of direction for Romania, and its economic policies". [...] The status quo in which those people who have power can do anything without accountability, has increased.

Vox Publica warns that ahead of the parliamentary elections due in November, "all mistakes can rebound against Ponta." For the new head of the government, the main risk is the creation of a "shorter term government: in which capable people will not want to take control with such a short mandate, and those of the socialist old guard will want to finally quench their thirst for power."