Rehn says there is a case to reduce Greek, Irish rates
Economic and monetary affairs commissioner says it is crucial to avoid moral hazard.
Olli Rehn, the European commissioner for economic and monetary affairs, has said that there is a case for lowering the interest rates on Irish and Greek debt.
Speaking in Luxembourg yesterday (7 March), Rehn said: “The issue now and tomorrow is debt sustainability and therefore I can see that there is a case to reduce the interest rates paid by Greece and Ireland.
“We have to avoid the moral hazard at any cost. That is done through the rigorous conditionality of the EU-IMF programmes, rather than a high level of interest rates.”
The incoming Irish government has said that the average rate of interest of about 5.8% that it is paying on EU loans granted last November is unmanageable.
Later in the day Rehn appeared before the economics committee of the European Parliament where he warned against forced bondholder writedowns as part of future proposals to tackle the debt crisis.
EU member states have agreed that writedowns for private sovereign bondholders could take place on a “case-by-case” basis rather than forcing them automatically to pay their share of bail-out costs.
Rehn told MEPs: “There is no doubt about the moral case [for forcing bondholders to pay], but at the same time in the current context we are still facing potential contagion effects.
“We have to now do everything we can to preserve financial stability and ensure that the credit channels will remain open.”
The permanent European Stability Mechanism (ESM) is to come into force in 2013 for countries in the eurozone. It will replace the temporary European
Financial Stability Facility (EFSF), which forms the largest proportion of the existing €750 billion rescue fund.
EU leaders are expected to approve a “comprehensive” package of measures at a summit on 24-25 March, but Rehn warned that the Parliament and European Commission should not be sidelined.
He said: “We must avoid creating a duplication of economic surveillance. “It is only the EU level which can deliver the results for economic governance.”
Commission seeks to improve protection but insurance industry sceptical about proposals.
Battle-lines are being drawn between EU policymakers and the insurance industry over plans to introduce further regulation covering the sector.
The European Commission intends to come up with a legislative proposal later this year aimed at improving protection for consumers against insurance companies that go bankrupt.
The move to create minimum standards for insurance guarantee schemes is seen by the Commission as another element in the complex process of emerging from the financial crisis.
Michel Barnier, the European commissioner for the internal market, has indicated that such schemes could safeguard against a loss of consumer confidence in the insurance industry, which might threaten market instability.
In doing this, the Commission is looking to introduce the same sort of protection as already brought into banking and other parts of the financial services industry.
Currently, about half of EU member states have their own national insurance guarantee schemes. They generally pay compensation to consumers whose insurance company cannot meet their commitments, or transfer their policies to a solvent insurer.
Where schemes do exist, they vary greatly. According to the Commission, about 62% of cross-border life-insurance agreements and 23% of cross-border non-life insurance agreements do not have any guaranteed protection at all.
Guarantee schemes
However, the insurance industry is sceptical about the plans, believing that their sector does not suffer from the same problems as banking. “We are telling policymakers that insurance guarantee schemes are not the panacea,” said William Vidonia, head of the single market and social affairs at CEA, which represents European insurers.
“Insurance guarantee schemes carry some negative side-effects, including moral hazard and cost – because ultimately the cost of setting up these schemes would have to be borne by consumers.”
The insurance industry has already had to come to terms with new regulation in the form of Solvency II, which is to become operational by 1 January 2013.
The insurance industry believes that Solvency II, as well as the new supervisory architecture in the guise of the European Insurance and Occupational Pensions Authority (EIOPA), which came into effect on 1 January, goes far enough in regulating the sector.
“We feel it would be wiser to wait for these initiatives to bed in before seeing whether additional regulation is needed, because they aim to enhance consumer protection,” said Vidonia.
However, a new European Parliament report takes the opposite view. It considers the introduction of insurance guarantee schemes as necessary to ensure the success of Solvency II.
MEPs have started to debate the report, drawn up by Peter Skinner, a British Socialist MEP, which calls on the Commission to propose a directive for minimum harmonisation of insurance guarantee schemes.
The report says that this would ensure the same level of consumer protection regardless of the location of the insurer writing the policy, whil ensuring there was no reduction in consumer protection in member states where schemes already exist. It is expected that the report, which will set down the Parliament’s view of the issue, will be put to the vote in May.
The EU faces both internal and external challenges to keep its economy competitive. While the member states have agreed on pacts and targets, business and analysts worry that these may not be enough for Europe to stay competitive.
There are as many different definitions for competitiveness as there are theories about how to achieve it. From the price of labour to the number of exports or the rate of productivity, all are different ways to measure a successful economy. Yet most economists and politicians agree that if Europe is to maintain high living standards, it must improve its competitiveness.
In Europe competitiveness has two aspects. First, internal competitiveness is vital if member states are to use productivity to push their economies forward. As can be seen only too clearly, some are managing this more successfully than others. Second, external competitiveness – where the EU faces a battle to remain an important world player in the face of other dynamic global economies – is arguably even more significant. One notable newtly published report, Daniel Hamilton’s “Europe 2020”, argues that the EU has just a decade left to get its house in order if it is not to be left behind for good.
ECB warning
Naturally, there is a link between internal and external competitiveness. Jean-Claude Trichet, the president of the European Central Bank, when asked for a definition of competitiveness, made this clear. Top of the league are countries whose economies make it easier for companies to be productive. The most productive companies tend to be those encouraged by their governments to do business abroad. In short, countries with highly productive firms are those that have “more intense domestic market competition, better technology and greater openness to foreign competitors”.
By that yardstick, it is not hard to be pessimistic about Europe’s competitiveness. The World Competitive Scoreboard 2010, published by IMD, a business research centre, placed only five EU member states above China for overall competitiveness. Europe’s ageing and dwindling population, high labour costs, lack of skilled migrants and expensive welfare systems all contribute to a sense that the EU will have to raise its game. And pretty soon.
Many analysts say that the economic crisis has provided the EU with an opportunity to do just that, by encouraging new structures and reforms. This is the idea behind the member states’ Pact for Competitiveness (later renamed the Pact for the Euro and finally agreed at the European Council of 24-25 March). Economists agree that the pact is on the right track in its stated goals of restraining wage increases, improving research and education, boosting the single market and reducing red tape for business. But many question whether the targets are tough enough.
Within the EU’s borders, Europe’s competitiveness problem is there for all to see. Imbalances between member states as a result of rising costs are damaging the EU’s peripheral economies.
Wage growth contributed too. In Greece, Portugal and Spain, labour costs have increased by 20% more than in Germany over the past ten years.
Wage restraint is one thing, but business leaders agree that a deepening of the single market should be a top priority. In January the European Round Table of Industrialists (ERT) – made up of the chief executives and chairmen of many of Europe’s top companies – called on the EU’s policymakers to open up the single market to services and the unrestricted movement of people.
Too little too late?
A year before the Pact for the Euro, the European Commission proposed a ten-year economic reform strategy, “Europe 2020”, with targets to improve employment rates, productivity and social cohesion. Many business leaders and economists believe the strategy has laudable aims but, if Europe really does have just a decade to get it right, it may be too little, too late.
Currently the EU is still hamstrung by problems within its own borders. Divergences in competitiveness mean that Europe is struggling to focus on its role on the world stage. All is not lost; Europe is starting from a strong position. But its leaders must grasp the nettle before it is too late.
Ten EU ministers outline their hopes for the Single Market Act.
On Wednesday (13 April) the European Commission will publish the Single Market Act, a strategic initiative to reinvigorate the single market by the end of 2012.
In this context, and in the wake of the meeting of European heads of state and government on 24-25 March, it is essential to reiterate the key role the single market has to play in delivering growth, creating new jobs and promoting EU competitiveness.
The single market is Europe’s greatest economic achievement, but it should not be taken for granted. We must act to make sure that we deliver the full and untapped potential of the single market in support of our efforts to achieve strong and dynamic growth in Europe.
It is essential that we have a modern and effective regulatory framework for European companies to operate across the EU as easily as they can in their own national market. While we have come a long way towards achieving this by removing barriers, creating common regulations and opening up markets across the EU, much work remains to be done.
Rapid development
The world has changed since the single market was launched in 1992. This is true both in terms of increasing globalisation and the rapid development of new information and communication technologies. It is crucial to Europe’s future that we greet these changes with openness and confidence. We must take advantage of the opportunities they offer and not paint them as threats from which we must protect ourselves.
This has been the guiding principle in all our responses to the Commission’s consultation on the Single Market Act and was reiterated in an open letter sent last month to the José Manuel Barroso, the president of the Commission, and Herman Van Rompuy, the president of the European Council.
We believe that the Single Market Act must be used to prioritise measures that will make Europe more competitive and create sustainable growth and new jobs. If the Commission fails to set the right priorities for the single market now, it would represent a significant lost opportunity at a time when we must focus on creating the conditions for economic recovery.
We want to see a Europe that allows the increasingly important services sector to thrive and achieve its full economic potential. We must remove restrictions that inhibit access to the EU’s service markets, reduce the number of regulated professions within the EU and make a firm commitment to implementing and enforcing the services directive.
We want to embrace developments in information technology, create a truly digital single market and give businesses and consumers the means and confidence to trade online. We must overhaul the current arrangements for e-commerce, facilitate an efficient cross-border framework for copyright and establish clear and transparent consumer rights.
We want to support innovation within Europe by establishing a unitary patent protection including a unified litigation system as a matter of urgency and by developing the EU’s standardisation system.
We want to create greater opportunities for small and medium-sized enterprises through regulatory simplification, including of the rules of public procurement, and where appropriate exempt them from regulations when they face disproportionate costs of compliance. In parallel, we will make all efforts to promote trade and investments across borders, especially for small and medium-sized enterprises, which play a fundamental role in creating jobs and growth.
Finally, we want to complete the internal energy market, move forward with energy-efficiency measures and continue the expansion of efficient, climate-smart transport networks.
Growth and jobs
We do not believe that there is a contradiction between the rights of the citizens, as workers and consumers, and growth and competitiveness oriented policies. On the contrary, growth and competitiveness are prerequisites for the creation of more jobs and increasing the opportunities and choices available to citizens. This, in turn, increases confidence in the single market.
We also emphatically reject the belief that growth and welfare can be built on protectionism and isolation from the rest of the world.
In today’s economy, where both production and consumption are global, trade is fundamental to both producers and consumers. Two-thirds of Europe’s goods imports go to the production of new goods in Europe. Consequently, reforming the single market must go hand in hand with an open trade policy towards the rest of the world.
Proposals such as those previously announced by the Commission to reduce the opportunities for companies from Brazil, China and South Africa to tender for public procurements in Europe should be strongly resisted. These proposals risk leading to fewer tenders, higher prices and increased costs for taxpayers in Europe.
The EU must now, more than ever, focus all its efforts on creating the conditions necessary for growth, competitiveness and job creation. Together, and with others in the EU who share our views, we will fight for a single market that supports these objectives and fight against all protectionist measures.
Martin Kocourek minister of industry and trade Czech Republic Brian Mikkelsen minister for economic and business affairs Denmark Juhan Parts minister of economic affairs and communications Estonia Anni Sinnemäki minister of labour Finland Richard Bruton minister for jobs, enterprise and innovation Ireland Artis Kampars minister of economics Latvia Rimantas Zylius minister of economy Lithuania Maxime Verhagen deputy prime minister and minister of economic affairs, agriculture and innovation the Netherlands Ewa Björling minister for trade Sweden Edward Davey minister for employment relations, consumer and postal affairs, United Kingdom
The Derby County forward says that there is no rush to complete the current season with the world in the grip of a pandemic, urging caution instead
Wayne Rooney has revealed that he would be left unsurprised if concluding the 2019-20 football campaign took until the end of the year, cutting significantly into next season’s projected calendar.
The former England captain, who returned to English football in January with Championship outfit Derby County, stressed that it was vital the sporting world did not try to buck the trend and force a return to action before it is deemed safe amid the spread of Covid-19.
Virtually all sport around the globe has been brought to a standstill amid the coronavirus pandemic, with the few remaining leagues expected to shut up shop in the coming days as well.
More teams
The decision has left many leagues in limbo, including all major domestic and continental competitions in Europe, with this year’s Euro 2020 championships already pushed back to next summer.
Despite this, several sides are continuing to train as a group, against official advice that encourages social distancing and self-isolation as nations look to contain the spread of the disease, which has over 300,000 confirmed cases so far with over 13,000 fatalities.
Writing in his weekly column in The Times , former Manchester United and Everton forward Rooney has stressed that the current campaign – with Liverpool poised for a first top-flight title in three decades and Leeds United and West Bromwich Albion on course for promotion to the Premier League – must be allowed to conclude, even if it means pushing back the 2020-21 season.
“The world is facing something serious and we in football should not be different from the rest of the population,” he wrote.
“Football is what everybody — especially in Britain — wakes up thinking about, but it has to take a back seat. This crisis is so much bigger than our game.
“The one thing missing from all the announcements last week was the FA ruling that every club should keep their players at home and not put anyone at risk, instead of leaving it to individual clubs to decide. I’d like to have seen that.
“But otherwise we now know where we’re going. The FA helped to clarify that the league season will finish and that is fair.
“Liverpool will win the Premier League. [They] have been fantastic. They have put so much work in. They deserve this title. Can you imagine waiting 30 years and then having it taken away like this? The right decision has been made.
“It’s also right in terms of promotion and relegation and Champions League places. These issues are so big for the clubs involved that I imagine there would be a lot of legal fights if the season was just abandoned. The fair thing is to finish 2019-20 — even if we have to lose next season in the process.”
“It wouldn’t surprise me if finishing the season takes until the end of 2020. Football, like every other industry, is in unknown territory and, just like every other industry, has to listen to the advice and take all necessary precautions. For me, that rules out finishing the season behind closed doors.
“When you play behind closed doors it still means bringing together a fairly large group of people. You need ambulances, doctors, paramedics. They’re mandatory. Police may be needed too. Why bring them all to a football match when in this crisis they will be needed elsewhere for things that are far more important?
“I wouldn’t be comfortable playing a game knowing there were people dying or very sick because of coronavirus and we’re taking those workers away from the front line.”
The former Bianconeri midfielder believes a World Cup winner generating plenty of transfer talk would rather head for Italy than Spain this summer
Paul Pogba is wanted at Real Madrid by Zinedine Zidane, says Momo Sissoko, but the Manchester United midfielder is considered to favour a return to Juventus.
Transfer talk continues to rage around a World Cup winner on the books at Old Trafford.
Injury has restricted Pogba from generating headlines with his performances on the field in 2019-20 and a lack of action has seen some suggest that long-standing interest in the Frenchman from Spanish giants is about to be shelved.
Zidane has, however, spoken in the past of his admiration for Pogba and is considered to remain keen on working with a fellow countryman.
Real may, however, face competition from Italy if a scramble for a prized signature is sparked.
Juve have made no secret of the fact that they would welcome a familiar face back to Turin, with the Serie A giants in the market for another creative influence in the middle of the park.
Sissoko believes Pogba would prefer to link up with the Bianconeri if given the option this summer, although the final call on his future continues to rest with United.
The former Juventus midfielder told Europa Calcio: “I know that Zidane wants him at Real Madrid but he would like to return to Juventus.
“But these are situations that depend not only on Pogba but also on Manchester United; he has a contract until 2021 with the English club.
“In my opinion, Pogba must find a team that makes him feel important in order to regain his top level.”
Sissoko was among those to pave the way for Pogba to make an initial move to Juve back in 2012.
The former Liverpool star departed Turin 12 months before a deal was done to bring another energetic performer into the Bianconeri squad.
Regular starts were hard for Sissoko to come by on occasions during his time in Italy, but he enjoyed every minute of a four-year stint with global heavyweights.
He added: “From the first day that I set foot at Juventus, I immediately felt at home. It was an honour for me to play for Juventus.
“I don’t have a special memory, for me every moment spent in the black and white shirt was special.”
The former Tottenham boss pushed for the South Korean forward to head off on international duty despite the north London club wanting him to stay put
Mauricio Pochettino claims Heung-min Son would no longer be at Tottenham had he not pushed for the South Korean to be cleared for Asian Games duty in 2018.
The forward had committed to a new contract with Spurs shortly before being called up for the crucial international event.
Son and his compatriots had been assured that they would be spared mandatory 21-month military service if they claimed gold medal glory at the Asian Games.
Premier League giants Tottenham were initially reluctant to part with a prized asset, as he was required to aid their domestic efforts.
Pochettino, though, was aware of how important the event was for Son and what it could mean for his future, and fought hard to keep the 27-year-old happy and committed to Spurs.
The Argentine, who parted company with Tottenham in November 2019, told the High Performance Podcast: “With Harry Kane injured, Son not playing the first few months because of the Asian Games, no one talks about that.
“Today, Sonny is at Tottenham because we allowed him to go and play two competitions that weren’t compulsory, not being selfish and saying, ‘No, Sonny needs to stay here’.
“If not, two years and you need to stop the contract with Son.
“No one says anything about that. It was our decision to provide him the time to go.”
Son remains an important figure at the Tottenham Hotspur Stadium, while Pochettino is waiting on offers to entice him back into the dugout.
He guided Spurs to the Champions League final last season and another top-four finish, but was relieved of his duties and replaced by Jose Mourinho after overseeing a tough start to the 2019-20 campaign.
On how things started to unravel for him, Pochettino said: “Monday [after the final], I was thinking to build again, because when you are so competitive and you are a winner, you are not stuck in the past. You lose, but you want to win again tomorrow.
“I wasn’t knocked because we didn’t win the final, we wanted to take a massive experience for us, learn and be ready again for the next season.
“We were fighting for the top four at the same time we were fighting to be in the Champions League final.
“If you lift the trophy, you are very successful. But second is a failure, no? We are not thinking like this but, of course, that makes you sad.
“Of course people recognise the job was fantastic, but to finish winning the Champions League would have been amazing.”
After enjoying a memorable 12 months, the 28-year-old defender – who is currently in self-isolation – has been named the best player on the planet
England and Lyon defender Lucy Bronze has been named BBC Women’s Footballer of the Year 2020.
The 28-year-old topped a public vote to take the prize, with Arsenal star Vivianne Miedema edged into second and World Cup winner Megan Rapinoe finishing in third.
Julie Ertz, another prominent figure in the all-conquering USWNT side, and Sam Kerr of Chelsea and Australia completed the five-player shortlist.
Bronze told BBC Sport on landing the prestigious award: “I’m definitely surprised – I wasn’t expecting it.
“It’s pretty special (being voted by the public) and quite amazing.
“All the girls that have been nominated are global superstars. I look at the list now and think everyone knows who these girls are so that’s pretty special.”
Bronze was also named the best player on the planet back in 2018, having become a prominent figure for club and country.
She added on the achievement of being a two-time winner: “Winning the first time was a surprise – and it is now – but to win a trophy twice is really special as it’s so much harder, to stay at the top level is so difficult, it’s not something that’s easy and I don’t take it for granted one bit.”
This time around there was no elaborate handover of the trophy, with coronavirus restrictions having forced sports men and women to take in periods of self-isolation.
With Lyon’s games having been postponed indefinitely, Bronze finds herself back in England and trying to keep in shape ready for the resumption of competitive action.
She said of the Covid-19 pandemic: “The players have been given some time off and all been told to stay in our homes and that’s what I’m doing the majority of the time.
“I’m now home in England, I’ve got my dog here and I’ve two girls who live with me in my house so we’re doing things to keep fit.
“I have been sent a fitness programme from the club. I’ve got some gym equipment, astroturf in the back garden so not completely away from football.”
Bronze finds herself back at the top of the world having enjoyed another memorable 12 months.
Her achievements include a domestic double and Champions League triumph with Lyon, while also becoming the first English player to win the UEFA Women’s Player of the Year award.
She was also runner-up for the World Cup Golden Ball and Ballon d’Or, with the Lionesses having reached the semi-finals of the showpiece event in France before losing to eventual winners USA.
Asked to pick out her highlights of the year, Bronze said: “Winning the Champions League for a successive year.
“I was pleased with my performance and we put on a real good show for women’s football. The World Cup hit me hard (losing in the semi-finals) but it’s motivated me to do more.
“I’m really proud in my career the fact there was a time I had to pay to train on a pitch twice a week to now the heights of being paid to play in another country, winning the Champions League, playing at Wembley.
“To see where women’s football is now, I would never have dreamt about it when I was first getting in to football when I was 12 years old. It’s part of the reason I don’t want my career to end with the buzz that’s around women’s football.”
Liverpool’s pressing is a great example of what can’t be imitated in players’ back gardens, says a football fitness expert with a wealth of experience
A fitness expert who has worked closely with Premier League players, including Manchester United forward Odion Ighalo, has warned it could take months for players to get back to full fitness and that there will be a higher risk of injury when football resumes.
As it stands the league has been postponed until April 30 at the earliest due to the coronavirus pandemic and players from all teams are currently training from home.
United closed their Carrington training base last week due to the virus and a date of April 10 has been pencilled in for the players to head back to the training centre. However, that could well be pushed back further with the situation being constantly reviewed.
Players from all age ranges and teams have been given personalised programmes to work on at home – in an attempt to keep fit during this unprecedented break to the season – and have been in constant contact with the club’s coaching staff over what they need to be working on.
But, Wayne Richardson, who spent 18 years working at Manchester City and has worked on a one-on-one basis with some of the United players after setting up his own fitness company Richardson Sport, believes it’s going to be a long journey back.
“When they finally return to full training you’re talking about a month really to build up to being anywhere near match fit,” Richardson explained to Goal. “They’re all at home working on programmes but they’ll have to be tested when they go back. Then they will start with agility work and then there’s going to have to be small games like a mini pre-season.
“We’ve never seen anything like this before, for me it’s sad. But there’s no other way around it. For the normal footballer who likes routine they don’t know what they’re going to do when they get back. That’s the difficulty for any professional athlete, not knowing what’s going to happen.”
Richardson has worked with players from the top to the bottom of the football pyramid and is concerned about the potential for injury once the leagues do restart.
“What we’re looking at now with the work the players are doing is gym-based and fitness but nothing replicates match sharpness, and players lose that quite quickly. Probably over a period of two to three weeks when it starts to drop off,” he explained.
“The concern will be when they get back that there’s potential for a lot of injuries. If you look at a team like Liverpool, who play with a high press, that requires a lot of change in direction, change of speed, linear and lateral type running. That’s something they’re not getting in their back garden and fitness levels can drop off very quickly.”
Instagram has given fans an insight into how players are trying to maintain their fitness levels at home in their private pools and personal gyms, and Richardson has been contacted by a number of players across the leagues who have wanted personal training sessions. But, with restrictions how they are at the moment it’s a risk the 47-year-old cannot take.
“I’ve had a lot of requests to go to players’ homes but I need to be careful of that because I don’t know who they’ve been in contact with. It’s a tricky situation, you want to help but everyone needs to be careful.”
For now the players are doing what they can in their homes but, even if the league does resume, it will take a long while before things go back to normal.
TORONTO ― Cannabis companies are calling on Ottawa to provide immediate help for the industry, hurt by the steps taken to slow the spread of COVID-19.
About 71 cannabis firms and organizations have written a letter to Finance Minister Bill Morneau and Industry Minister Navdeep Bains asking for their companies to get access to wage subsidies being made available to small businesses.
Watch: What condo dwellers should expect in an age of pandemic. Story continues below.
They are also asking to get access to funding through federal agencies, the Business Development Bank of Canada and Export Development Canada.
They say the BDC has indicated that cannabis companies cannot access $10 billion in stimulus funding they have to offer, so the industry is seeking more equitable treatment.
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Among the letter’s signatories are Canopy Rivers Inc., WeedMD, Organigram Inc. and Fire and Flower Inc.
The cannabis industry had already experienced more than 2,000 job losses in the last six months and funding drying up, when COVID-19 hit, causing more layoffs and some pot retailers to close.