TRANSATLANTIC ECONOMY – News Archive
January– June 2006

The New York Stock Exchange (NYSE) signs a preliminary deal to merge with the pan-European Euronext exchange
June 29, 2006
The NYSE signed a $10 bn groundbreaking proposal to merge with European exchange market Euronext. A definitive deal between NYSE and Euronext, if approved, would create the first transatlantic stock market. Under the agreement, each NYSE share would convert into one share of common stock in the merged company, to be renamed NYSE Euronext. The EU is eventually expected to rule on the merger. The agreement would set up the world's largest and most liquid securities marketplace with a combined market capitalisation of around $20 billion. Read More Background on a transatlantic securities market

OECD issues 2006 Economic Outlook
June 2006
The OECD publication provides invaluable insight into the economic trends and features of most advanced countries. "Together with a wide range of cross-country statistics, the Outlook provides a unique tool to keep abreast of world economic developments.In addition to the themes featured regularly, this issue contains a special chapter on Future Budget Pressures Arising from Spending on Health and Long-Term Care, which addresses the following questions: How much will ageing boost public health and long-term care expenditures over the next 50 years?What other factors influence spending and how are they likely to evolve?
Which role could policies play in containing future spending pressures?" . Read the full report

EU urges an energy pact with Russians
By Judy Dempsey International Herald Tribune
March 9
BERLIN. Russia took center stage in European energy discussions Wednesday as the European Union urged its 25 members to form an energy pact with Moscow, while Poland, once again the renegade, presented an energy security plan that would exclude Russia, one of the Continent's main suppliers.
Speaking in Brussels, José Manuel Barroso, president of the European Commission, said he would hold talks with President Vladimir Putin of Russia later this month on intensifying the EU's energy relationship with Moscow.
"We need a new partnership with Russia," Barroso said. "We are interdependent. If we need a flow of energy from Russia, namely gas, I believe that it is also in the interest of Russia to have a stable market and a stable relationship with such an important customer as the European Union." Read More

US, EU join forces to fight fake goods trade
June 19, 2006
WASHINGTON - The United States and European Union are launching a joint campaign to fight the huge global trade in fake and pirated goods, beginning in Russia and China, EU officials said on Monday.
"Stepping up the enforcement fight required a joint strategy and it needed to have some teeth," EU Trade Commissioner Peter Mandelson said in a statement.Read More

TACD Recommendations to 2006 EU-US Summit
TACD submitted its recommendations to the European Commission and U.S. Government to be considered in planning for the 2006 U.S.-EU Summit, which will take place in Vienna in June 2006.
Read More

The Economics of Outsourcing:How should policy respond?
FPIF Report
March 2,2006
Outsourcing is a central element of economic globalization, representing a new form of competition. Responding to outsourcing calls for policies that enhance national competitiveness and establish rules ensuring acceptable forms of competition. Viewing outsourcing through the lens of competition connects with early 20th century American institutional economics. The policy challenge is to construct institutions that ensure stable, robust flows of demand and income, thereby addressing the Keynesian problem while preserving incentives for economic action.[...] Global outsourcing poses the challenge anew and calls for creative institutional arrangements to shape the nature of competition.
Read More

G-6 states dig in on new trade deal
Richard Waddingtonand William Schomberg
LONDON — Six of the world’s leading trading powers dug in on their positions at the weekend in removing long-standing hurdles to a global trade deal, but reaffirmed a commitment to conclude a key part of the pact by the end of next month.Brazilian Foreign Minister Celso Amorim said negotiators had to achieve a breakthrough in World Trade Organisation (WTO) talks, hosted by European Union (EU) trade chief Peter Mandelson, but were still not there after two days of talks...Read More

OECD Observer
Trade Interdependency
One characteristic of globalisation is the growing interdependency of countries and regions in all areas of international transactions. Take imports. According to the latest OECD Economic Globalisation Indicators, between 1995 and 2003 the share of demand met by imports in the OECD area increased from 34% to 41% for goods, and from 35% to 48% for services. Imports to the EU from other OECD countries remained very high, albeit easing slightly to 71% between 1995 and 2003.Read More

Annual EU Report on US Trade Barriers highlights behind-the-border and WTO issues; progress on Byrd Amendment, telecoms procurement
March 1st
The European Commission today released its twenty-first annual report on barriers to trade and investment in the US, detailing the obstacles that EU exporters and investors face in the US market. The report highlights non-tariff barriers in investment and public procurement and addresses some long running WTO problems such as issues concerning the US Jobs Act (FSC) and the repeal of the Byrd Amendment. The report comes out on the day the EU and US are lifting telecoms procurement sanctions against each other, bringing to an end a more than a decade-long dispute. The Transatlantic Economic Initiative is also offering new possibilities to advance trade, and tackle the regulatory and non-tariff barriers identified in this report...Read More

EU and US start regulatory co-operation
February 14
About 150 senior EU and US regulators, EU member states representatives, European Parliament and US Congress officials attended the first high-level meeting of the EU-US Regulatory Cooperation Forum on 26 January in Brussels. Numerous non-governmental interested parties also attended the meeting, including the Trans-Atlantic Business and Consumer Dialogues (TABD and TACD).
The forum meeting offered an insight into "how we regulate" on both sides of the Atlantic and to review recent developments in EU and US regulatory environments. It also allowed stakeholders and regulators to identify priorities in reducing regulatory differences and thereby advancing transatlantic economic integration...Read More

EU-US Forum "A Transatlantic Market by 2015"
CEPS
February 2, 2006
On Monday, the 2nd of February CEPS hosted a EU-US forum organised in co-operation with the Transatlantic Policy Network (TPN). The list of distinguished speakers included Erika Mann, MEP, James Elles, MEP, Alexander Schaub, Director General of DG Internal Market of the European Commission and Jim Cloos, Director of the Directorate Transatlantic Relations of the Council of the European Union...Read More

Aznar defends free economic circulation between US and UE
Spain Herald
Feb 8, 2006
Former PP prime minister Jose Maria Aznar yesterday presented a report written by his foundation, FAES, titled "The Atlantic area of prosperity," at Georgetown University in Washington, DC. Aznar supported the necessity for an alliance between the US and the EU which would permit the free circulation of goods, services, and capital...Read More

NYSE Bids for Euronext to Create Transatlantic Market
May 22 2006
(Bloomberg) -- NYSE Group Inc. made a cash and stock offer of about 8 billion euros ($10.2 billion) for Euronext NV , Europe 's second-largest stock exchange, to create the first transatlantic securities market. Euronext investors would receive stock in the new company and 21.32 euros ($27.12) in cash for each share, the owner of the New York Stock Exchange said in a statement today. The bid amounts to about 71 euros for each Euronext share, or 4.8 percent less than closing price on the Paris stock exchange on May 19. NYSE Group Chief Executive Officer John Thain wants to unite the 214-year-old New York Stock Exchange with bourses in Paris , Amsterdam , Brussels and Lisbon , creating a single market bridging two continents. To succeed, he'll have to beat Deutsche Boerse AG, which made a competing offer last week. The board of Euronext will examine the proposals today, and shareholders will consider the bids at the company's annual meeting tomorrow. Read More