Monday, August 19, 2013

Spain claims sovereignty over Gibraltar, which is a British overseas territory. There have been lengthy traffic delays at its border with Spain since the extra checks began.  The UK says it is considering legal action over the checks, which Spain argues are needed to stop smuggling and are proportionate. Spain also denies they have been imposed in retaliation for an artificial reef installed by Gibraltar which Spain says will disrupt its fishing fleet. Downing Street said on Friday that Mr. Cameron had called Mr. Barroso to raise "serious concerns" that Spain's actions were politically motivated and "disproportionate" - and broke EU rules on freedom of movement. He said the UK wanted to resolve the row through "political dialogue". But as the checks continued, Mr. Cameron added, the UK was "collating evidence on the sporadic nature of these measures which would prove that they are illegitimate".
"In the meantime, we believe that the European Commission, as guardian of the treaties, should investigate the issue," a Downing Street spokesman said. He said the prime minister had urged President Barroso to "send an EU monitoring team to the Gibraltar-Spain border urgently to gather evidence of the checks that are being carried out". "The PM emphasised that the Commission has a responsibility to do this as part of its role overseeing the application of [European] Union law," added the Downing Street spokesman. A European Commission spokesman said President Barroso had told Mr Cameron the situation was being monitored to "ensure respect for EU law". "President Barroso also expects that this matter is addressed between the two countries concerned in a way that is in line with their common membership of the EU," the spokesman added. Deputy Prime Minister Nick Clegg is also due to speak to his Spanish counterpart, Soraya Saenz de Santamaria, to press the UK government's concerns.

2 comments:

Anonymous said...

Germany should return to "normal" growth rates in the second half of the year, according to its central bank.

Bundesbank said in its monthly report:

Quote In the second half of 2013, economic growth in Germany is likely to return to normal and steady rates.

The statement follows Germany's strongest growth in more than a year in the second quarter. Gross domestic product increased by 0.7pc between April and June compared with the first quarter.

Growth in Germany and the rest of the eurozone will benefit from the European Central Bank's record-low interest rates, which it has vowed to keep low for an extended period, the Bundesbank said, but added that this was not an unconditional commitment, Reuters reports.

The Bundesbank noted that domestic investment was unlikely to pick up discernibly without a long-term improvement in growth prospects for Germany's neighbours and the implementation of measures to solve the debt crisis to dispel uncertainty.

Private consumption will continue to be supported by moderate inflation and low unemployment.

Anonymous said...

European markets continuing to trade in the red.

Italy's FTSE Mib is the biggest faller so far today, down 1.44pc, after comments yesterday from Prime Minister Enrico Letta.

He said that the collapse of his government would undermine an economic recovery and anger voters after local media reported centre-right leader Silvio Berlusconi was poised to pull the plug on the executive.

A lack of any big macro news today is also keeping markets lower, says Matt Basi, head of UK sales trading at CMC Markets.

Quote The new trading week has picked up pretty much where the last one left off, with equity markets struggling for impetus as indices drift lower in light volume trade.

A blank macro calendar today is unlikely to inspire much change to the recent pattern, with most traders awaiting Wednesday’s Fed minutes and any clues on the potential scale of the tapering plan that the market now seems convinced will begin in September.

Ahead of the minutes our clients are pretty evenly spit on the direction of travel for equities, with around 52% of client with positions in the major indices maintaining a long bias. This indecision seems like a fair gage of the mood in the wider market, with the direction of travel unclear despite consecutive lower weekly closes.

The FTSE 100 is bouncing between gains and losses today and is currently down 0.19pc.