Week of November 27th, 2010Posted: November 27, 2010
Here is a summary of the European new this week:
The dominating topic this week was, as of last week, the economic situation in the eurozone and Ireland in particular. The Irish governement officially called for a bailout last week. The details of this help came at the beginning of the week: Ireland asks for 90 billions euros over three years [*]. The Irish public, not supporting of the idea of bailout, asked and got the promise of early elections that will take place in the beginning of next year once the austerity budget has been approved by the current parliament [*,*]. The austerity measures that aim at bringing back the deficit to 3% of the GDP (compare to 32% today) in 4 years were presented in the middle of the week by Prime Minister B. Cowen: it is a combination of spending cuts and tax increase – leaving the generous corporate taxes untouched. [*,*] The details of the European bailout plan should be know in the next few days [*], but Irish people are already protesting the austerity budget [*].
Ireland has not received any money from the Financial Stability Fund yet that everybody is looking at Portugal, considered as the next in line for a bailout. Portugal was approving this week an austerity budget while experiencing widespread strikes [*,*].
All these news contributed to the euro diving, going below $1.33 in the middle of the week and continuing its slide down since [*].
Meanwhile, the European Parliament was seating in plenary session [*]. MEPs approved a report in favor of the anti-counterfeit treaty ACTA ( two reports over ACTA were opposing and the adoption of one over the other was made with only 16 votes) [*], affirmed their stand over the Union budget for 2011, for which negotiations are still in deadlock [*], voted for a better information of citizens about the drugs they are taking and banned the use of bisphenol A in plastic, especially in the products for young infants [*,*]