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Accomplishments and Expectations: The Swedish and Spanish EU Presidencies

When Sweden took over the rotating presidency of the European Council of Ministers in July 2009, the EU faced many challenges. Nevertheless, Swedish Prime Minister Fredrik Reinfeldt noted at the end of Sweden’s six months that it had achieved what it set out to achieve. The Treaty of Lisbon was finally adopted and entered into force on 1 December, the EU’s financial market was given a new supervisory architecture, and the EU developed a common position on climate change, in addition to other significant achievements. For more on the outcomes of the Swedish presidency, click here.

With the beginning of 2010, Spain assumed the EU’s rotating presidency. The Spanish presidency comes at a defining moment for the EU—with the historic Lisbon Treaty coming into force, the new permanent President and High Representative taking office, andefforts continuing to help Europe escape the economic recession. As the first presidency to operate under the Lisbon Treaty, the relationship Spain develops with the new EU leaders could set a precedent for future EU presidencies. Spain also plans to act in close coordination with the next two presidency holders, Belgium and Hungary, to provide a model for increasing consistency in EU leadership.

Spain's Prime Minister, José Luis Rodríguez Zapatero, has indicated that his country’s presidency will focus on four main concerns: 1) helping Europe emerge from the economic crisis by promoting balanced and sustainable growth, 2) promoting rapid and complete application of the Lisbon Treaty, 3) encouraging participation of citizens in the EU, and 4) developing a "global, responsible, and supportive" foreign policy, which aims to strengthen the transatlantic relationship, increase dialogue with Latin America, and be supportive of member states and possible future members. For more on the outlook for the Spanish presidency and its emphasis on renewing transatlantic relations, click here.

The European Union's historic Lisbon Treaty enters into force

The Lisbon Treaty, signed by EU leaders in Portugal's capital in December 2007, and only completely ratified by all EU countries in October 2009, is a tremendous step for European unity and harmony. This marks a historic and dramatic shift in European and global dynamics. This Lisbon Treaty created the positions of President of the European Council (replacing the rotating presidency) and a High Representative for Foreign and Security Policy, which are meant to present a united position on EU policies. The Lisbon Treaty also increases the use of majority voting in the Council of Ministers and increases the involvement of the democratically-elected European Parliament in the legislative process. In addition, the pillar system was eliminated. Finally, the Treaty also made the Union's human rights charter, the Charter of Fundamental Rights, legally binding. The stated aim of the Lisbon Treaty  was "to complete the process started by the Treaty of Amsterdam [1997] and by the Treaty of Nice [2001] with a view to enhancing the efficiency and democratic legitimacy of the Union and to improving the coherence of its action."
For more information and analysis on the Lisbon Treaty click here.

Transatlantic Relations News

Euro Poised for Further Declines
08 February 2010 – Wall Street Journal – Fabio Alves
The dollar and yen both continues to benefit from ongoing uncertainty over the perceived dangers to the growth outlook within the Eurozone. A weekend meeting of G7 ministers failed to deliver a stronger message than the European commission had delivered last week. Investors had been optimistic ahead of the weekend that a deeper resolution may have evolved from the meeting this weekend. Group of Seven finance ministers pledged to press ahead with economic stimulus measures, even as investors intensify their focus on mounting budget deficits.
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EU foreign policy chief fleshes out challenges
4 February 2010 - Financial Times - Tony Barber
In an interview with the Financial Times, the European Union's foreign policy chief, Catherine Ashton, gave guarded answers on the various challenges she is now charged with being Europe's voice on. She has already faced some heated criticism for not visiting Haiti in the aftermath of January's earthquake. She says she will go "when the noise has died down and I can be of real use." The creation of Ashton's position was meant to enhance the EU's ability to speak with one voice, but this is still limited by disagreements between the governments of the member states. Such disagreements exist on major issues from Kosovo, to the Middle East, to Iran. But Ashton played this down, saying that a statement on the Middle East agreed in December will give her one stance to represent when she visits the region next month. She has also urged China to support tougher UN sanctions on Iran.
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Could NATO Membership For Russia Break Impasse In European Security Debate?
5 February 2010 - Radio Free Europe/Radio Liberty - Robert Coalson
As NATO attempts to revamp its strategic mission and the West has tried to "reset" relations with Russia, Moscow and some Western observers argue that the European security system is dysfunctional. Russia has felt left out of key security arrangements, and while the US and Western European countries have expressed a wish to cooperate with Russia, they worry about giving it an effective veto power in European security. Robert Coalson explores the possibility that the solution should be for NATO to move toward admitting Russia as a member. Then-president Boris Yeltsin expressed a desire to join NATO in 1999, and just this week a Russian think tank, the Contemporary Development Institute, reported that membership should be a goal. Some analysts believe that the prospect of NATO membership could move Russia toward compromise on the aggressive stances it has recently taken towards its neighbors, such as Georgia, and lend an advantage to political reformers in Moscow. However, it would also require fundamental changes in NATO's structure and decision-making process, as Russia could not accept being part of an organization dominated by the US. This provokes some skepticism as to whether Russian membership would create a better security environment.
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NATO chief predicts improvements in Afghanistan
5 February 2010 - Washington Post - Slobodan Lekic
After a year of deterioration in 2009, the situation in Afghanistan should improve this year, according to NATO Secretary-General Anders Fogh Rasmussen. At a two-day conference of defense ministers of 44 countries involved in the war, Rasmussen said "After a difficult year in 2009, we now see a new momentum in 2010 and it has already started." His assessment echoed that of US commander Gen. Stanley McChrystal, who told reporters Thursday conditions in Afghanistan are no longer deteriorating. Rasmussen and US Defense Secretary Robert Gates encouraged the allies to send more military and police trainers, to help Afghan forces take responsibility for security.
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Europe Sovereign debt fears rattle investors
4 February 2010 – Financial Times – Robert Budden
Investors pushed German bonds and U.S. Treasury’s higher, in moves to safety as fears mounted that the problems along the euro zone won't be resolved anytime soon. The Portuguese government reported a higher than expected budget deficit of 9.3% of gross domestic product in 2009, meanwhile in Greece the deficit is 12.7% of GDP. Both figures well above the euro zone deficit limit of 3%.  The euro fell to a 7 month low against the dollar triggered by the euro-zone's fiscal problems.
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EU mission alone cannot solve piracy problem, says admiral
2 February 2010 - EU Observer - Valentina Pop
The commander of the European Union naval mission of the coast of Somalia says the operation has had a deterrent effect on pirates, but will not be enough to solve the problem alone. The EU's first naval mission began a year ago in the Gulf of Aden, and has successfully protected UN food supply ships from pirate attacks. But although the overall number of attacks in the gulf has dropped in recent months, it has increased further out in the Indian Ocean. Unless EU ships catch pirates in the act of hijacking, they do not have a mandate to make arrests, only to seize weapons. The EU is planning humanitarian aid and a police training mission in hopes of addressing the problems onshore in Somalia.
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Clinton: Europe's reassurer in chief?

2 February 2010 - Foreign Policy - Josh Rogin
Some European diplomats claim that despite Europe's admiration for President Obama, and their abhorrence of his predecessor, George W. Bush, they have had trouble getting time and attention from the Obama administration. The White House's announcement this week that Obama will not attend the EU-US summit in May added to their sense of being overlooked. Foreign Policy Magazine's Josh Rogin observes that Secretary of State Hillary Clinton has taken on the task of assuaging Europe's concerns. In a speech in Paris last week, Clinton affirmed that "European security remains an anchor of U.S. foreign and security policy. A strong Europe is critical to our security and our prosperity."
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US Blames Lisbon Treaty for EU Summit Confusion
3 February 2010 – EU Observer – Andrew Reitman
The US State Department has said that President Barack Obama’s decision not to attend the Madrid EU-US Summit in May is due in part to confusion arising from the EU’s new leadership structure under the Lisbon Treaty. With the new Permanent President of the European Council joining the President of the Commission and the rotating presidency (currently held by Spain), it is now unclear who the US president should meet with, and when. “We are working through this just as Europeans themselves are working through this,” explained State Department spokesman Philip J. Crowley.
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Obama’s Madrid Snub Exposes ‘Excessive EU Summitry’
3 February 2010 – EurActiv
The announcement that US President Barack Obama will not attend the May EU-US Summit in Madrid took Spain and the EU by surprise, and was a particular blow to Spain after it fought to host the summit. Some EU analysts have concluded that President Obama’s decision is a result of the EU’s “excessive summitry.” The EU holds too many bilateral international meetings too often, sometimes with unclear agendas. Antonio Missiroli, director of the European Policy Centre, asserts that Obama’s decision should not be viewed as an affront to Europe or a sign of deteriorating transatlantic relations. However, he says it was not “entirely accidental,” either. The EU is still struggling to present a united front, and there have reportedly been tensions between the Spanish government (which holds the rotating EU presidency) and Herman Van Rompuy (the new President of the European Council). In addition, President Obama traveled to Europe more times last year than any other US president in a similar period. He is also bound by domestic priorities, particularly with the upcoming midterm elections. Still, Missiroli asserts that “Europeans in general tend to hold too many summits…Maybe focusing on fewer summits with more substance and more continuity in foreign relations in between summits is the way ahead.”
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EU leaders play down Obama decision on summit
3 February 2010 - Financial Times - Tony Barber and Mark Mulligan
European Union officials have sought to play down the decision by President Obama not to attend a summit in May with EU heads of state. US officials said that the president had not planned to go to the summit in Spain, partly because he had already traveled to Europe often in his first year in office. Some diplomats in Brussels thought the decision might have been influenced by last year's summit in Prague, which brought together national leaders from all 27 member states and the US, but produced few results. The EU's foreign policy chief, Catherine Ashton, said the US-EU relationship was still warm.
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Simon Tisdall: Economic Crisis Will Lead to Stronger US-EU Ties
2 February 2010 – The Guardian – Simon Tisdall
According to Simon Tisdall, America is broke.  The spending of the Obama administration will exceed government income by around $1.6 trillion this year alone.  Over the next ten years, the deficit should be around $8.5 trillion.  Therefore, it is apparent that, very soon, the US will need an ally and loyal friend.  Tisdall claims that the age of American hegemony might be ending, and this only means that the US will be scrambling for ties with another superpower – this superpower will be the EU.  The US’s heightened vulnerability will drive the US right into the EU’s arms, and the EU will welcome the US gladly.  Of course, Obama has just recently refused to go to the EU summit in May, but according to Tisdall, Obama will soon find that he – and the US – need Europe now more than ever.
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Moldova Gets Big IMF Loan
2 February 2010 – Radio Free Europe
While most of the focus is on Greece, Europe’s poorest country – Moldova – is trying to recover from a budget deficit that is 16% of its GDP.  To help with the deficit, Moldovan officials and the IMF have agreed on a US$574 million loan.  Moldovan Prime Minister Vlad Filat said that this loan was the only way that his country could avoid “total collapse.”  He may be right, as the deficit has caused a 7% contraction in Moldova’s economy last year alone.  Moldova, completely reliant on natural gas from Russia, is suffering because of the increase in price of natural gas in Russia.  As a result, Russia has promised to give a US$150 million credit.  Moldova is also expecting US$80 million from the World Bank, and Romania has also agreed to give Moldova US$140 million over the next four years.
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Germany Will Buy Stolen Swiss Bank Account Data, Schaeuble Says
2 February 2010 – Bloomberg - Patrick Donahue
Germany signaled yesterday that it would buy information of Germans dodging taxes by parking funds in Switzerland. The affair has ignited a moral dilemma in Germany, with several politicians saying Berlin should not pay for stolen data. Others argued that the tax revenue that could be recovered was worth the price. The information could yield 200 million euros ($277 million) in lost tax revenue to the German government.
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EU's Top-Down Crisis
2 February 2010 – Wall Street Journal – Charles Forelle
President Barack Obama will not attend what has been an annual EU-US summit with the European Union leaders this spring. The decision to skip the summit will likely disappoint many Europeans. Despite the Lisbon treaty’s ambition to make the EU a bigger player the bloc has had issues in presenting a united front. The EU has many presidents; there is the new full-time president, the president of the European Commission and the rotating presidency hold every six months by a new country.
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The London Conference and the EU in Afghanistan
31 January 2010 - New Europe - Edward Burke
Most EU member states view their commitment to Afghanistan "almost exclusively through a NATO prism" and is not taking necessary steps to demonstrate that the EU can act effectively on a major security issue, according to researcher Edward Burke. Last week's conference on Afghanistan in London, he says, "called into question the EU's relevance as an actor in Afghanistan," as the the block's foreign policy chief, Catherine Ashton, was treated as a "fringe player." EU efforts, which include a Police Mission, have been under-resourced. A plan for boosting these efforts, however, was drawn up during the recent Swedish presidency of the EU, identifying areas such as civil and political capacity building, electoral and judicial reform, and police training where the EU could work more effectively than NATO in Afghanistan and Pakistan. European leaders demonstrated in London that they are prepared to keep up a strong commitment to Afghanistan, even at high political risk, Burke says. But they must devote resources to that commitment through the EU as well as NATO.
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EU divided on lifting China arms embargo
31 January 2010 - Financial Times - Tony Barber and Jamil Anderlini
Some European Union leaders have criticized Spain for suggesting the EU lift its embargo on arms sales to China, a divisive issue among the 27 member states. Spain's ambassador to Beijing told a Chinese newspaper his government would "deepen discussions" on lifting the embargo during its six-month presidency of the EU, comments which were greeted with "amazement" by EU officials in Brussels. The episode coincides with China's angry reaction to US approval of $6.4 billion arms deal with Taiwan, and request to the EU to lift its embargo, which has been in place since the Tiananmen Square crackdown in 1989. EU foreign policy chief Catherine Ashton has not spoken on the matter, and questions have been raised as to whether she is asserting herself effectively in her new position, and whether Spain is overstepping the bounds of its role on foreign policy.
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Hillary Clinton urges NATO to reach out to Russia
29 January 2010 - AFP
Secretary of State Hillary Clinton urged NATO allies to reach out to Russia and to revitalize European security partnerships in a speech in France Friday. To meet what she called, "some of the greatest challenges in human history," Clinton said, "we are required to modernize and strengthen our [trans-Atlantic] partnership for this new era." Clinton criticized Russia for withdrawing from the Conventional Forces in Europe treaty two years ago, and for its war with Georgia in 2008. The US wants to cooperate with Russia, however, on missile defense in Europe. "Missile defense will make this continent a safer place. That safety could extend to Russia, if Russia decides to cooperate with us," Clinton said.
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Deteriorating Greece Situation Could Force EU's Hand
29 January 2010 – Wall Street Journal – Adam Cohen
With a big financial problem going on in Greece, the EU will in all likelihood employ a cooperative effort to help Greece.  Juaquin Almunia Mira, the European Commission’s Commissioner of Economic and Monetary Affairs, stated that, “We are cooperating with those who have more serious problems…We are all in the same ship.”  A united effort by the EU’s members, then, might help the continent avoid a debt spiral.  While there are some calling for Greece to solve its problems alone without a bailout, the EU believes that a concert between the nations can help everyone mutually pull out of their recessions, especially the one in Greece.
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NATO Lauds Ukraine Contribution, Resumes Military Links with Russia
28 January 2010 - Radio Free Europe - Ahto Lobjakas
Ukraine has this week become the first non-member state to contribute troops to the NATO Response Force, although this move does not represent an advance towards membership. The chairman of NATO's military committee, Admiral Giampaolo Di Paola, said Ukraine would provide "useful niche capabilities in 2010 and 2011. The Ukrainian units will remain on standby in their own country, and Di Paola said the alliance would be capable of carrying out its mutual defense commitment without calling on Ukrainian troops. Military ties with Russia have also been revived this week, as Di Paola met with Russia's Chief of Staff in Brussels. An agreement on military-to-military cooperation was signed, which will be followed by a "work plan" in May.
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NATO strategy to look at EU relations, says Albright
28 January 2010 - EU Observer - Valentina Pop
Former US Secretary of State Madeleine Albright told members of the European Parliament that relations between NATO and the EU will be included in NATO's new strategic concept. Albright is chair of an expert panel advising NATO on the new document. It will outline new threats ranging from terrorism to cyberattacks, and how the alliance could respond. The EU's expansion, and its military and civilian missions abroad, must also be taken into account. At a time when national budgets are hurting, it is particularly important not to duplicate between the two organizations, Albright argued. MEP's echoed the call for more coordination and a clear division of labor.
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Finnish Foreign Minister Gives Speech on “The New Atlantic Decade”
27 January 2010 – Ministry for Foreign Affairs of Finland
Alexander Stubb, the Foreign Minister of Finland, gave a speech on the importance of transatlantic relations at the Royal Institute of International Affairs in London. Likening the US and Europe to “a grumpy old couple that have lived, loved, and fought together,” Stubb asserted that they now need to “renew their wedding vows.” He noted that Europe and the US share fundamental values that provide a solid foundation to build upon, but that common history and values are not enough. While the Atlantic region is still the “most integrated, most advanced, and most influential region of the world,” the coming decade will bring challenges that “can only be tackled in the context of transatlantic solidarity.” “The emerging multipolar world requires a new type of transatlantic partnership,” Stubb claimed. He also noted the recent spate of think tank analyses on transatlantic relations which provide a wealth of practical proposals that policy makers should consider implementing —including the “Shoulder-to-Shoulder” report (see link under “What Others Are Saying," left). Finally, Stubb endorsed five concrete proposals, many adopted from “Shoulder-to-Shoulder”: making a transatlantic solidarity pledge (in which the US and EU would come to each other’s aid in the event of a natural or man-made disaster), advancing a transatlantic green economy, creating a full-fledged free trade area, including other “Atlantic rim” countries in transatlantic cooperation, and setting up a group of experts to create proposals on how to reinvigorate the transatlantic relationship. “If we make the right choices now,” Stubb concluded, “in a hundred years from now we may be looking back at not just an Atlantic decade – but another Atlantic century.”
(Read More)

World powers to support faltering Yemen to bolster fight against al-Qaeda linked terrorism
27 January 2010 - The Canadian Press - David Stringer
Foreign Ministers meeting in London have backed plans to bolster Yemen's fragile government, which is facing growing instability and risks becoming a haven for al-Qaeda terrorists. Delegates from the US, Europe, Russia, and the Middle East attended a conference in London convened after the attempted Christmas Day bombing of an American jet. Al-Qaeda's affiliate in Yemen claimed responsibility. The delegates urged Yemen to carry out domestic reforms and pursue a possible cease-fire with Shiite rebels in the north of the country. The new Friends of Yemen group, which includes the Group of Eight countries and the Gulf Cooperation Council, will hold further talks in the Middle East in the coming months.
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NATO struggling to fulfill commitments for more troops in Afghanistan
27 January 2010
One month after the US said it was counting on NATO to provide up to 10,000 additional troops in Afghanistan, the alliance is struggling to reach that commitment. Germany announced on Tuesday that it would send 500 reinforcements, only a third of what American officials had been pressing for. NATO Secretary-General Anders Fogh Rasmussen had said in December that allies had pledged 7,000 "fresh forces," and raised hopes for further commitments. It now appears that NATO is counting some previously pledged or deployed troops as part of that 7,000 number.
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Davos 2010: Bankers Hit Out at Regulation Plans
27 January 2010 – BBC News
The five-day World Economic Forum began in Davos, Switzerland today with banks and regulators working on plans that would call for more financial regulation.  In order to achieve the goal of a smarter global financial system, a “financial centre” is being proposed.  Bob Diamon, head of Barclays Bank, said, “We need a strong financial centre in New York and a strong financial centre in London.  This is a time when isolated actions in the UK and US are not constructive.”  Barney Frank, chairman of the House Financial Services Committee in the US, believes that “rules are a good idea” and, therefore, certain restrictions should be placed on banks to prevent problems that have arisen during the financial crisis.
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IMF Sees 3.9% Growth
27 January 2010 – Wall Street Journal – Bob Davis
According to the IMF, the global economy will grow by 3.9% in 2010.  However, rich countries – especially the US – will not witness rapid growth in order to reduce unemployment substantially.  In fact, “unemployment will remain high,” says chief IMF economist Olivier Blanchard.  In terms of overall economics, however, it is estimated that the U.S. will grow by 2.7% this year and then dip slightly to 2.4% in 2011 since government stimulus money will be reduced.  Europe is also expected to grow, but slightly less than the U.S.  Finally, the IMF indicated that the major problem it sees is with a lack of “financial-sector stability” that can be fixed globally if banks increase their capital.
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NATO says Afghanistan conference to raise millions to pay Taliban
26 January 2010 - Daily Telegraph - Thomas Harding
NATO Secretary-General Anders Fogh Rasmussen says the London conference on Afghanistan will raise money to persuade Taliban militants to lay down their arms. He said it was necessary to "establish a trust to finance the reintegration program." Asked if this meant raising millions of dollars to pay off the Taliban, Rasmussen responded, "I will put it another way. We need funds to provide people with better alternatives for a fruitful occupation rather than fighting for the Taliban." Afghan President Hamid Karzai will present a plan to the conference for negotiations with the Taliban and reintegration of Taliban fighters into society. It will require money for new jobs, pensions, land, and potentially relocating senior militants abroad.
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British envoy named NATO's Afghan rep
26 January 2010 - AFP
Britain's ambassador to Afghanistan has been named to the new NATO post of chief civilian representative in Kabul. Mark Sedwill will have an increased role in coordinating the alliance's civilian efforts. A senior US official in Brussels said Sedwill could improve cooperation between the 26 Provincial Reconstruction Teams currently operating in Afghanistan. Most of these teams are run by the United States, though several are run by other nations. Afghan officials have complained that the PRTs have been reporting back to their own governments, not to Kabul or any centralized point.
(Read More)

EU agrees to train Somali troops
25 January 2010 - BBC
The European Union is sending a team to Uganda to help train 2,000 Somali troops to fight against Islamist insurgents. The mission, of about 200 EU troops, will be led by Spain. The Somali government has also requested international help to build a 6,000 strong police force. The government controls only parts of the capital, Mogadishu, while militants have taken over much of the rest of the country. The EU already has a naval force in the Gulf of Aden to combat pirates, but acknowledges the causes of piracy stem from the instability in Somalia.
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EU to send gendarmerie force to Haiti
25 January 2010 - EU Observer - Andrew Rettman
European Union foreign ministers have agreed to send 300 military police to Haiti to help with policing problems in the aftermath of the earthquake. EU development commissioner Karel de Gucht, who visited the country over the weekend, said the Haitian government "has practically disappeared," noting that he had to meet with the president and other senior officials in a disused police station. The block's foreign policy chief, Catherine Ashton, said that the UN had requested European gendarmes for specific tasks rather than to provide general security. Most of the gendarmes will come from France, Italy, and the Netherlands.
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US Commander signals peace talks with Taliban
25 January 2010 - BBC
The top US and NATO commander in Afghanistan says the increased troop levels in the country could help bring about negotiations with the Taliban. Afghan and Pakistani leaders are meeting in Turkey, which has offered to mediate talks with the Taliban. General Stanley McChrystal said the additional troops from the US and NATO should achieve "very demonstrably positive" progress this year, and militants could become more amenable to talks. McChrystal said that a political solution to all conflicts was "inevitable." Afghan President Hamid Karzai is hoping to win allied backing for a reconciliation plan at an upcoming conference in London.
(Read More)

In Davos, Return of the Bankers
24 January 2010 – The Wall Street Journal – Deborah Ball
Leaders of the business, political, philanthropic worlds are gathering in Davos, Switzerland this week for the annual meeting of the World Economic Forum. The economic gloom and the fragility of the banking system have cast a cloud over the global agenda and are likely to dominate discussions. Participants will also concern themselves with a change in the intellectual climate in which the global economy operates, and the geopolitical consequences of the crisis and recession. (Read More)

Rich Nations Urged to Provide $10 billion in Climate Funds
24 January 2010 - BBC
The $10 billion is only the first wave of funding promised by rich nations in the Copenhagen Accord. The Accord pledges that developed nations will fund almost $30 billion over the next 3 years. However, because the Accord is nonbinding, this funding may not become available. Representatives from China, India, South Africa, and Brazil called for the first wave of funding to become available immediately as a sign of commitment to the agreements made in Copenhagen. The four countries also reaffirmed their commitment to curbing emissions and broadly endorsed the Copenhagen Accord. These statements come a week before the countries who signed the Accord are required to release figures on how they will curb emissions.
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Bank Stocks Decline on Obama Plans
22 January 2010 – BBC News
After President Obama laid out his plans to curb big bank spending, the shares of European big banks dropped.  For example, Barclays saw its drop by 4% and the Royal Bank of Scotland fell by 2.9%.  This was not simply a UK isolated incident – “German and French banks also declined,” like Deutsche Bank (which fell 4.3%) and Societe Generale (down 6%).  Despite these numbers, European financial officials have yet to decline participating with Obama’s new measures.  According to the UK’s Treasury, Obama’s new plan will be considered “very carefully.”  The biggest outcry, however, seems to be that government controlling the free enterprise of banks would cripple them.  Regardless, the reforms Obama has proposed are big – indeed, “banking reforms do not come bigger than those proposed by President Obama.”
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US welcomes EU's new foreign policy powers
22 January 2010 - EU Observer - Andrew Rettman
US Secretary of State Hillary Clinton welcomed the Lisbon Treaty's upgrading of the European Union's foreign policy powers at a meeting in Brussels. "I expect that in decades to come, we will look back on the Lisbon Treaty and the maturation of the EU that it represents as a major milestone in our world's history," she said. Clinton and the EU's new foreign policy chief, Catherine Ashton, said that the US and EU would continue to stand side-by-side on pressuring Iran over its nuclear program and coordinating earthquake relief in Haiti. Clinton also praised Ashton personally as a "strong, thoughtful, and accomplished partner," defending her against recent criticism from EU parliamentarians.
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EU puts off reply to US request for airport body scanners
21 January 2010 - AFP - Christian Spillman
The European Union wants to complete studies on the health effects and privacy of full-body scanners before deciding to install them at airports. The US had urged Europe to expand use of the devices after the attempted Christmas Day bombing of a transatlantic flight. US Secretary of Homeland Security Janet Napolitano defended the effectiveness of the scanners at a meeting with EU interior ministers in Toledo, Spain. She said the US was planning to install at least 450 scanners at its airports in the next year. Spain wants the EU to adopt a single policy, although Britain and the Netherlands have already said they will use the scanners. The European Commission had previously dropped plans to introduce them in 2008 after opposition from the EU Parliament.
(Read More)

Eurozone Economic Recovery Slows
21 January 2010 - Financial Times - Ralph Atkins 
The euro-zone economy expanded for the fifth straight month in January, although at a slower pace than expected, raising questions over whether the bloc's economic recovery is losing steam. Private domestic demand in the euro zone has been persistently weak, leaving economies to rely on temporary life support from government stimulus programs and export demand. But despite January's decline in activity, firms remained confident about future demand and companies also recorded the lowest level of job losses for 15 months. Although the results were largely below expectations and some now question whether the euro-zone recovery is struggling to gain traction. Jürgen Stark, a European Central Bank executive board member pointed out that the "recent weakness signaled a “gradual and bumpy” recovery – rather than a “double-dip recession”
(Read More)

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