2016/06/03 [Gefira-Newsletter] After the Brexit Referendum, a Fiscal Union Will be Brussels' Surprise.

After the Brexit Referendum, a Fiscal Union Will Be Brussels' Surprise

The process of drawing up a joint EU budget has just commenced: it is the first step to a fiscal union. The idea of having a joint budget has long been pushed forward by the proponents of a more tight integration, just as it has been opposed by the European population at large. The term budgetary or fiscal capacity should be properly understood: it is a joint budget for the eurozone that will be governed by a real treasury in Brussels. To create a collective treasury, Europe's social and economical model has to be brought in line. For this, Brussels wants all minimum wages to be equal. Martin Schulz, the President of the European Parliament, announced drastic reforms after the Brexit referendum. Following 23 June the aforementioned process of integration will gain momentum and it is likely to encounter upheavals because there is widespread aversion to federalization.

Poland Prepares to Import Own Gas From the North Sea

Polish President Andrzej Duda has visited Norway to attend the Polish-Norwegian Economic Forum in Oslo. As a result, the political approval for gas supply to Poland from Norway has been made. Also Denmark has offered its support for the construction of the Baltic Pipe (a gas link that would connect Poland and Norwegian gas fields through the Danish infrastructure as part of the route). The state-run Polish gas company PGNiG bought in 2014 shares in four fields on the Norwegian Continental Shelf. The gas supply from Norway as well as the LNG supplies to the Świnoujście terminal are part of Poland's plan to reduce its reliance on gas supplies from Russia. The Baltic Pipe would also secure gas supply to Poland, Ukraine, Slovakia and the Baltic states or even Finland.

French PMI Resembles That of Greece Rather Than Germany

The monthly €80 billion ECB’s quantitative easing, harmful internal reforms and high public deficit have not helped the French manufacturing sector which has contracted for the third straight month in May, even if the reading was insignificantly higher than expected. The Markit Eurozone Manufacturing PMI posted a three-month low in May. The euro area has stuck in stagnation and France has joined Greece as a main concern.

My priorities, Jean-Claude Juncker In this context, a targeted fiscal capacity at Eurozone level could be developed to work as a shock-absorber, if needed. Source: Juncker.epp.euSource: Juncker.epp.eu

Martin Schulz: ‘The European Union is in a dismal state’ Unfortunately no. I think one of the problems of the euro zone is this macro-economic imbalance – in our jargon that means very uneven development within the euro zone. We must fix that, whether Britain stays or leaves. But I think if it left, that would force the other member states to realize: now is the time to act. And in any case, after June 23, we’ll need to discuss the future structure of the European Union.” Source: Global Conversation  Source: Global Conversation

Denmark offers Poland support on plan for gas link to Norway. Denmark on May 19 offered its support to the Baltic Pipe project, a gas link that would connect Poland to Norwegian fields using existing Danish infrastructure as part of the route. Source: Intellinews 2016-05-19 Source: Intellinews 2016-05-19

"Green light." When will the Baltic Pipe be completed? There is the political green light for the supply of Norwegian gas. The project is pending the agreement between Polish, Danish and Norwegian companies, said government plenipotentiary for strategic energetic infrastructure Piotr Naimski on Tuesday Source: Forsal 2016-05-24