EU summit stuck on Turkey. #Euco draft text tabled an hour ago:
- repeats EU solidarity with Greece, CY
- calls for halting of TR gas activity
- says if constructive efforts are made in E Med, the council will "launch a positive EU Turkey agenda" and "renergising" with TR
Language as it stands seems to be getting nowhere with Cyprus. Diplomats say the discussion has been further complicated by French push to condemn Turkey's role in Nagorno-Karabakh #euco
For those who have been frustrated by linkage between Belarus sanctions and the Eastern Med situation, wait til you here about
Nagorno-Karabakh #euco
Draft #euco text also repeats the "all instruments on the table" but that does not seem to be enough for 🇬🇷🇨🇾 who are aggrieved at chunky references to the "carrots" also being offered to Turkey in return for de-escalation (upgrading customs, migration cooperation etc)
Draft Turkey language to be rewritten during 45 minute pause in #euco before dinner starts. I hope they're having Turkish food @BarendLeyts
#euco dinner starts and the Greeks have submitted proposals to redraft text on Turkey, aiming to redress the balance so there are plenty more sticks as well as 🥕
Charles Michel handing out ⭐'s to EU leaders who can correctly define what the "delimitation of the continental shelf" means and identify the "Mavi Vatan map" as per the Greek text.
#euco has a new draft on Turkey with more sticks:
- adds "strong condemnation" for TR drilling
- says EU "fully committed" to settling CY issue
- maintains use of "all instruments" for unilateral action/provocation from TR
- commits EU to taking decisions by Dec at latest
And for all my cynicism, Greece's language on the "delimitation of the Continental Shelf and the Exclusive Economic Zones" stays. No sign of Mavi Vatan however. #euco
New #euco draft does not mention sanctions specifically but leaves open use of "all instruments" in accordance with to Article 29 and 215 - which are both references to economic sanctions against third countries
Midnight passes at #euco and leaders take a break after Cyprus blocks conclusions on Turkey - despite the pleading of Angela Merkel
NEW: Andrew Bailey and Kwasi Kwarteng attended a meeting of the G7 counterparts in Washington this afternoon, where their counterparts, led by Janet Yellen, made a number of "backhanded" swipes at events in the UK
Finance ministers, led by Yellen, warned against governments carrying out unfunded tax cuts and policies that threatened financial stability. Canada's finance minister Freedland also chipped in
The warnings were not explicitly aimed at the UK but they were clearly directed at the Brits. One diplomat said that Kwarteng and Bailey did not respond, sticking squarely to their pre-prepared scripts
Bailey admits that the Bank's emergency liquidity interventions mean that its monetary policy goals and its financial stability mandate are now running in opposite directions. This is in contrast to the last dash for cash in March 2020, when QE achieved both goals.
‼️‼️ BoE Bailey sends clear warning that BoE interventions will end on Friday. He tells funds: "You've got three days left to get this done".
Bailey's categorical warning that bond-buying will end this Friday will raise more questions about whether the Bank can still proceed with its QT programme, which is due to start on the same day as the chancellor's fiscal update, October 31
IMF has downgraded its 2023 global growth forecasts today (from slowest onwards, non exhaustive list):
🇷🇺 -2.3%
🇩🇪 -0.3%
🇮🇹 -0.2%
🇸🇪 -0.1%
🇬🇧 0.3%
🇧🇪 0.4%
🇫🇷 0.7%
🇳🇱 0.8%
🇺🇸 1.0%
🇧🇷 1.0%
🇨🇦 1.5%
🇯🇵 1.6%
🇨🇳 4.4%
🇮🇳 6.1%
The 🇬🇧 is due to suffer the worst average inflation rate of the advanced economies (9% in 2022, 9.1% in 2023). But the IMF forecast for a "significant slowdown" in growth does not factor in policies announced in the mini-budget on Sept 23
On the 🇬🇧mini-budget, the IMF says the "sizeable" fiscal package "is expected to lift growth somewhat above the forecast in the near term, while complicating the fight against inflation."
Happy new year from Planet Brussels where this has just landed in some people's inboxes 🎁 #taxonomy
A 60-page draft #taxonomy text landed in inboxes of member states minutes before 2022 struck. A "consultation" process - which does not involve MEPs - will run until mid Jan. Some highlights on what's included 👇
Commission stresses that on nuclear energy and fossil gas there are "rapid technological" developments occuring.
On ☢️, draft paves the way for awarding the green label as long as MS can provide plans for safe waste management and a 100g per KW of CO2 is not exceeded
German Greens have won the right to propose the country's next EU commissioner. There has been an expectation that VDL would serve two terms. It's a canny move which will mean VDL will feel obliged to keep Greens on side for next 2.5 years.
Pilling pressure on VDL already, vice chair of Greens speculates how "cool" it would be to have a Green European Commission President
One suggestion is that VDL could secure Greens support if she agrees to stand on a transnational list at next EU elections. Thus far, debate over pan-EU lists has been killed by VDL's centre right EPP party
France's finance minister has arrived at the #Eurogroup fuming at the state of EU energy market rules calling them "unfit for purpose" after energy price rises have "become unbearable for our citizens and businesses"
Le Maire will be teaming up with Spain's Nadia Calvino today to demand Brussels reform EU energy market rules to better regulate gas stocks and scrap a marginal pricing system so price of electricity production in each MS reflects costs for consumers ft.com/content/463d0e…
Commission's initial response - a flexibilities paper laying out what gov's can do - is unlikely to satiate French or Spanish asks. Worsening prices over winter risks poisoning Europe's fiscal and climate policy debate ft.com/content/5805c3…