AEIP Newsletter • Week 15

12 – 16 April 2010

Table of Contents

EU FINANCIAL SERVICES............................................................................................................................... 2
I. BANK OF IRELAND CHANGES MAY CUT DEFICIT BY 50% .................................................................................. 2
II. FTK PARAMETERS COULD COST EXTRA 50% IN CONTRIBUTIONS - VB AND OPF............................................ 2
EU INTERNAL MARKET .................................................................................................................................. 2
I. EURO ZONE READIES 30BN EUROS TO RESCUE GREECE .................................................................................... 2
II. WHAT LESSONS TO DRAW FROM GREEK CRISIS? ............................................................................................. 3
III. BULGARIA DROPS PLANS FOR EARLY EUROZONE ENTRY ................................................................................ 3
IV. COMMISSION SAYS READY TO BACK ESTONIA'S EUROZONE BID .................................................................... 3
EU HEALTH ......................................................................................................................................................... 4
I. LIMITING UNIVERSITY PLACES OF STUDENTS NON-RESIDENT IN BELGIUM MAY BE JUSTIFIED ON GROUNDS OF
PUBLIC HEALTH PROTECTION ............................................................................................................................... 4
II. CONFERENCE ON HEALTHY AGEING ............................................................................................................... 4
III. SWEDISH PHARMACISTS TACKLE FAKE MEDICINES ........................................................................................ 4
EU SOCIAL AFFAIRS......................................................................................................................................... 5
I. FINLAND SHOULD BUILD UP THIRD PILLAR DC, SAYS OECD ........................................................................... 5
II. CALLS FOR SLOVAK PENSION REFORM GROW LOUDER .................................................................................... 5
III. SWISS LEFT-WING RAISES PENSION ISSUES ON REFERENDUM TAILWIND ........................................................ 6
IV. UK CONSERVATIVE PARTY PROMISES TO KEEP DB SCHEMES VIABLE ........................................................... 6
V. IRISH DC PENSION MEMBERS SHOW MORE CAUTION THAN DB TRUSTEES ...................................................... 7
ECONOMY ........................................................................................................................................................... 7
I. SOCIALISTS, UNIONS AND ANTI-GLOBALISATION ORGANISATIONS PUSH FOR “ROBIN HOOD” TAX ................... 7
EVENTS AND COURT CASES.......................................................................................................................... 8
I. 22 – 23 APRIL 2010 CONFERENCE ON MINIMUM PENSIONS, EVOLUTION OF SOCIAL SECURITY SYSTEMS AND
THEIR CONTRIBUTION TO SOCIAL INCLUSION: MINISTERIAL MEETING ................................................................. 8
II. EUROPEAN COURT OF JUSTICE CALENDAR".................................................................................................... 8
IN DEPTH ANALYSIS ...................................................................................................................................... 10
I. STATEMENT ON THE SUPPORT TO GREECE BY EURO AREA MEMBERS STATES ............................................... 10
II. SOCIALISTS, UNIONS AND ANTI-GLOBALISATION ORGANISATIONS PUSH FOR “ROBIN HOOD” TAX ............... 11

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EU Financial Services

EU Financial Services

I. Bank of Ireland changes may cut deficit by 50%

The Bank of Ireland has proposed changes to its defined benefit (DB) scheme that it claims could
halve the €1.6bn accounting deficit in the scheme. Following a review and consultation process,
including a recommendation from independent third party mediator Mark Connaughton, the proposed
changes have been accepted by the Irish Bank Officials Association (IBOA) trade union, partly on the
basis it will allow the bank's DB scheme to continue. The proposed changes to the BoI Staff Pension
Fund (BSPF) include: A freeze on pensionable salaries to 1st April 2012; Pensionable salaries to be
capped at the annual increase in CPI/RPI, up to a maximum of 4%; A guarantee that final pension will
be at least 85% of the pension benefits that would have accrued if the cap had not applied; Changes
to discretionary post-retirement increases; From April 2012 pensions will rise by the increase in annual
CPI/RPI up to a maximum of 4%; Member contributions will remain unchanged at 2.5%, and Pension
freeze for three years for workers retiring on or after 1 January 2016. "If such proposals are agreed,
the Bank and its subsidiaries will increase their cash contributions, above existing cash contributions,
to the schemes so as to eliminate the 50% balance of the 31 December 2009 IAS 19 deficit over
approximately six years". (09/04/2010 IPE.com)

II. FTK parameters could cost extra 50% in contributions - VB and OPF
The new parameters for the financial assessment framework FTK, as proposed by social affairs’
minister Piet Hein Donner, could require a 50% rise in contributions, the pensions bodies VB and OPF
have claimed. The pensions associations have asked the minister to refrain from taking drastic
measures now, and instead take the parameters for the allowed assumptions on returns, as well as for
calculating liabilities, into account when discussing the integral review of the FTK. Responding to the
recommendations from the Don Committee, Donner has proposed to decrease the upper limit on
return assumptions for listed equity and indirect property by 0.8% to 6.8%. He also wants to set the
parameters for fixed income investments at gross 4.5%, rather than without investment costs.
According to VB and OPF, the proposals will also deliver added aggravation for pension funds through
the application of both arithmetical and analytical maxima, as well as through the mandatory use of a
flexible forward curve for accounting liabilities. (15/04/2010 IPE.com)
EU Internal Market

EU Internal Market

I. Euro zone readies 30bn euros to rescue Greece

Eurozone finance ministers approved a giant 30-billion-euro emergency aid mechanism for debt-
plagued Greece on Sunday (11 April) but stressed Athens had not requested the plan be activated
yet. Together with at least 10 billion euros expected from the International Monetary Fund in the first
year, it could add up to the biggest multilateral financial rescue ever attempted. In a rare weekend
telephone conference, finance ministers of the 16 nations that share the single European currency
backed a detailed plan for Greece to borrow from eurozone governments and the IMF at significantly
below market rates. "The programme will cover a three-year period. The euro area member states are
ready to contribute for their part up to 30 billion euro in the first year to cover financing needs in a joint

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programme to be designed with and cofinanced by the IMF," the EU finance ministers and the
European Commission said in a joint statement. (12/04/2010 Euractiv.com)

For the detailed plan and joint statement see in depth analysis page: 10

II. What lessons to draw from Greek crisis?

Drawing lessons about Greek budgetary and statistical meanderings over recent years, in an effort to
enhance European economic governance, was the subject of the hearing at the European Parliament
on Wednesday 14 April. In an effort to identify the loopholes, mistakes or ploys that led Greece to the
edge of a precipice, the economic and monetary affairs committee brought together Commissioner Olli
Rehn, the director of Eurostat, representatives from the financial sector, such as the president of
Goldman Sachs USA and the president of the International Swaps and Derivatives Association
(ISDA). At the end of the investigation into the quality of Greek statistics, Eurostat pointed out that the
Greek government had used certain innovative derivative products in the past in an effort to artificially
reduce its debt. This was immediately acknowledged by Walter Rademacher, the director general of
Eurostat. But to what extent are Eurostat and the Commission aware of the financial engineering used
by some member states to mask their national accounts, asked José Garcia Margallo y Marfil. In the
case of Greece, it was the use of swaps, with the assistance of Goldman Sachs, which was criticised.
Although they were not strictly legitimate, the swaps operations were legal at the time (they have not
been so since 2008), pointed out Rehn. While other countries, such as Italy, Poland, Belgium and
Germany, may have used such creative mechanisms, they have since revised budgetary information
to take account of these transactions, Rademacher said. However, “it is likely that Goldman Sachs
wasn't the only institution” taking part in such operations. (14/04/2010 Agence Europe)

III. Bulgaria drops plans for early eurozone entry

Bulgaria's centre-right government on 9 April abandoned plans to join the bloc's exchange-rate
mechanism, ERM II, after the country recorded a larger-than-expected deficit in 2009 as a result of
unaccounted procurement deals signed by the previous socialist-led cabinet. Dnevnik, EurActiv's
partner in Bulgaria, reports. Bulgaria will not enter ERM II, seen as the eurozone waiting room,
Finance Minister Simeon Djankov announced at a press conference on Friday (9 April). "We have
given up applying for the euro zone because for the moment we don't meet the criteria and it would
have been insolent to do so," said Prime Minister Boyko Borissov. Bulgaria had planned to join ERM
II in 2010 and to become a member of the euro zone in 2013. For a long time, Bulgaria has claimed
that it is about to fulfil the Maastricht criteria for eurozone entry. (12/04/2010 Euractiv.com)

IV. Commission says ready to back Estonia's eurozone bid

Estonia is likely to become the seventeenth member of the euro zone in 2011 as its macro-economic
performance remains under control despite the recession. The European Commission is set to give its
green light in mid-May. "If nothing extraordinary happens, the Commission will give its positive opinion
for the accession of Estonia to the euro zone on 12 May," an EU official said, clearing the way for
Baltic country to join the euro in 2011. On 12 May, the European Commission is also scheduled to
publish its convergence report for 2009. "It will be the day of deepening and also possibly gradually
widening the euro area," Economics Commissioner Olli Rehn said on Wednesday (14 April) during a
press conference in Brussels. "I will already have this Friday the first exchange of views in Madrid with
finance ministers in the Eurogroup and in the Ecofin on this important subject," he added. The informal
meeting of Eurogroup and eurozone finance ministers will last until Sunday, according to the schedule
of the EU's Spanish Presidency. Last March, the European Commission expressed a generally
positive comment on the Estonian economic programme for the coming years. "The Estonian
authorities implemented in 2009 a decisive consolidation of public finances, which contributed to the
ongoing adjustment in the economy and has helped bring public finances in line with the expected
lower growth," reads the text. Indeed, according to the Estonian government's estimations, the public
deficit is set to regularly decrease as a percentage of GDP in the coming years. Tallinn foresees a

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deficit of 2.6% in 2009, 2.2% in 2010 and 2.0% in 2011. In order to access the euro zone, candidate
countries have to keep this figure below 3%. (16/04/2010 Euractiv.com)

EU Health

EU Health

I. Limiting university places of students non-resident in Belgium may be justified on grounds

of public health protection
European Union law precludes, in principle, a limitation on enrolment by non-resident students in
certain university courses in the public health field. However, such a limitation is compatible with
European Union law if proved justified with regard to the protection of public health. That is the
substance of the judgment delivered by the EU Court of Justice on Tuesday 13 April in a case which
brought Nicolas Bressol and others and Céline Chaverot and others against the Government of the
French Community of Belgium. For some years, the French Community of Belgium has noted a
significant increase in the number of students from other member states, in particular France, enrolling
in its institutions of higher education, in particular in nine medical or paramedical courses. Taking the
view that the number of such students attending those courses had become too large, the French
Community adopted the decree on 16 June 2006, according to which universities and schools of
higher education are obliged to set a limit on the number of students not considered as resident in
Belgium who may register for the first time in one of those nine courses. In principle, the total number
of non-resident students is limited, for each university institution and for each course, to 30 % of all
enrolments in the preceding academic year. Once that percentage has been reached, the non-
resident students are selected, with a view to their registration, by drawing lots. In that context, the
Belgian Constitutional Court, before which an action was brought seeking annulment of the decree,
submitted questions to the Court of Justice for a preliminary ruling. (13/04/2010 Agence Europe)

II. Conference on Healthy Ageing

On 15 April 2010 the European Parliament hosted a conference on “Healthy Ageing a Research
European Priority: the Dutch Perspective.” The conference was a success bringing together top
decision makers and prestigious scientists. The opening speech was given by Maria Geoghegen-
Quinn, the Commissioner for Research and Innovation, where she repetitively requested new idea
proposals in the field of research and innovation which she would present at the autumn summit for
th
the 8 European framework program. In addition she made clear claim that her goal was “research to
retail.” She is pushing for the EU to research and develop ideas in the field of healthcare which can
then be sold and used in hospitals worldwide. This conference answered many of Ms Geoghegan-
Quinn’s demands by outlining the problems in healthcare and individuals lifestyles and presenting
possible solutions which need to be researched, developed and implemented in the coming years.
For more information please contact jesssica.buckley@aeip.net

III. Swedish pharmacists tackle fake medicines

New technology designed to combat counterfeit drugs has been successfully trialled by pharmacists in
Sweden, as a new EU directive on tackling fake medicines makes its way through the European
Parliament.The two-dimensional (2D) barcode system, which is backed by Europe's pharmaceutical
industry, allows retail pharmacists to verify the product is authentic and check whether a medicine has
been previously dispensed. Pharmacy staff and industry experts say the technology could help keep
counterfeit medicines from entering the distribution chain, and makes life difficult for pharmaceutical
bootleggers. (15/04/2010, Euractiv.com)

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EU Social Affairs

EU Social Affairs

I. Finland should build up third pillar DC, says OECD

Third pillar defined contribution (DC) pension systems play a minor role in Finland, but the government
should consider measures to encourage a more significant DC pillar in a bid to improve risk sharing
between generations, the OECD has suggested. In its latest Economic Survey on Finland 2010 ,the
Organisation for Economic Reconstruction and Development (OECD) noted while the 2005 pension
reforms were a "step in the right direction" the pension system needs further adjustments to lower
fiscal costs. It argued the Finnish government should raise the minimum retirement age from 63 to 65
and either increase or abolish the existing maximum retirement age of 68. That said, the OECD
warned this needs to be combined with incentives encouraging older individuals to continue working.
This could perhaps be achieved by tightened access to disability pensions and by abolishing the so-
called "unemployment pipeline" available from age 57, that provides benefits and allows early
retirement at 62 with no actuarial penalties. The need to encourage people to work longer will not only
help sustain the labour market, but the OECD noted that from 2010 new earnings-related pensions will
be reduced in line with increased longevity, so retirement incomes in relation to wages will fall unless
people work longer. The OECD report also showed the Finnish pension system can be described
almost entirely as a defined benefit (DB) system, which affects the risk distribution across the
generations. A drop in asset values – as seen in 2008/09 – will not affect accrued benefits but only
future contributions, so the current younger and future generations bear a larger share of the pension
risk. The report noted: "Compared to most OECD countries, third-pillar DC systems play a minor role.
A larger reliance on defined-contribution schemes would be useful from a risk-sharing perspective,
even though the government should be careful not to pursue such objectives with distorting subsidies."
The OECD warned old-age dependency will increase faster in Finland than almost any other OECD
country over the next 20 years, so it should take a "multi-faceted approach" to the ageing challenge.
Other recommendations from the report include reducing the pension accrual rate to 1.5% before the
age of 65, and increasing it to 6% afterwards, while there should also be consideration of lowering
accrual rates in non-working periods such as unemployment, study or parental leave. "While the
average retirement age has increased since the introduction of the new pension system and on the
back of a strong labour market, the recession is likely to undo some of these recent gains. Reforms to
the pension system are required to increase sustainability and lift old-age employment rates towards
the levels of the other Nordic countries," the report stated. (09/04/2010 IPE.com)

II. Calls for Slovak pension reform grow louder

The Slovak Academy of Sciences has been joined in its calls for pension reform in Slovakia by the
ministry of social affairs, a government adviser and a representative of the trade unions, during an
AEIP conference in Bratislava. In a recently published paper on Slovak future development, the Slovak
Academy of Sciencespointed out that supplementary pension schemes were an integral part of the
Slovakian pension system. However, the academy argued the first two pillars, which in Slovakia make
up the mandatory state pension system, should be reformed by changing the parameters in the first
pillar and reducing contributions to the second pillar. Up to 50% of the social contribution of 18% of the
salary can be transferred to the second pillar at present, if a worker chooses to join this pensions pillar.
The academy also suggested the current voluntary third pillar should be widened to all employees and
turned into a true supplementary pension system. Part of the reform considerations should be to have
right of determination for employer and employee representatives in the funded pillars, argued Viera
Tomanova, minister for labour, social affairs and family in the Slovak Republic. “It is not possible to leave
the social sphere in the hands of financial institutions which operate on the principles of maximising
profits,” she noted. “The claims that everything should be left to the experts are very misleading,” she

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added, while arguing “often only so called experts” will be “the first to get out of the troubles that they
caused” while the state and the social partners will be “left to solve the problem.” Her comments are
somewhat inflammatory but are also made in light of the country's pending general election in June.
Vojtech Tkac, an adviser to the same ministry, seconded the academy’s call for the creation of a
contributory occupational pension pillar instead of what he described as the current “deformed third
pillar”. He also stressed there should be greater importance on the introduction of employer-employee
participation in decision-making. Until 2005, Slovakia's third pillar pension funds were made up of a
board of directors which included employer/employee representatives. But tthis board was abolished
when the government adjusting the supplementary funds to meet EU regulations, which included the
separation of clients’ and company assets. Vladimir Mojs, from the Slovak federation of trade unions,
claimed pension management companies now operate like most other insurance companies. Similarly,
Francesco Briganti, director at the AEIP, quoted a Moody’s study which suggested non-profit or
paritarian systems had fared much better during the crisis than profit-oriented pension companies.
However, Viktor Kouril, head of the Slovak pension fund association, defended the current system by
stating employer representation on the board of pension fund management companies might pressure
employees to join certain funds, thereby depriving them of the free choice and weakening competition.
“We are not trying to avoid a dialogue with paritarian institutions and some pension fund companies do
have such discussions. But the actual management of the money should be left to experts,” he pointed
out. “The employer system had its positive features, especially in the beginning when employer
representatives helped attract new members. But now the system is stabilised,” he added.
(12/04/2010 IPE.com)

III. Swiss left-wing raises pension issues on referendum tailwind

The Swiss Social Democrats (SP) want to separate pension money from other assets within insurance
companies while another left-wing politician wants pension funds to be supervised by the financial
supervisory authority “Finma” in future. The Swiss SP is now demanding changes as the referendum
on the conversion rate cuts was judged by many to have been a protest against fee structures and
reserve policies of insurance companies. Under SP suggestions, insurers would no longer have
access to any capital gains made from their clients’ pension assets and would instead have to
separate these assets from any other insurance business. Furthermore, the SP wants unified
regulations on the management of pension assets in insurance companies as well as on fee
structures. According to Peter Wirth, head of the second pillar platform “Vorsorgeforum”, the move
would "most likely be the end of the insurance-based 'Vollversicherungsmodell'" as it would be much
harder for insurance companies to build sufficient reserves offer them. In his newsletter, Wirth quotes
figures suggesting one-fourth of Swiss pension plan members are currently in such schemes and are
used by 150,000 SMEs. Wirth said he would like to see market competition solve the problem of
unjustified fees and failed reserve policies in some insurance companies. Meanwhile, Marlies
Bänzinger from the Greens has put forward a motion in parliament arguing the financial markets
authority Finma should be responsible for the supervision of pension funds. She argued the social
ministry BSV, which is still the supervising body at present, does not have the financial expertise.
However, the BSV will be relieved from this duty soon anyway as supervisory reforms will create a
new authority. Bänzinger has yet to clarify whether she would like to see the supervisory remits split
between the new authority and the Finma in future, as her motion is set to be discussed in parliament.
(12/04/2010 IPE.com)

IV. UK Conservative Party promises to keep DB schemes viable

Shadow pensions minister Nigel Waterson has called for the end of mandatory indexation along with
other reforms to UK defined benefit (DB) schemes, on the day the UK Conservative Party launched its
election manifesto. Waterson has called for “true risk sharing” in DB pension schemes and said while
making changes to the schemes would not be easy, it was the only way to keep them viable. “True risk
sharing in DB schemes would require new legislation that would remove mandatory indexation, make
it easier to change Normal Pension Age, address PPF obligations and reforming accounting rules; not
clear sailing,” the shadow pensions minister said. “But the end result could see employers being

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attracted to keep providing DB, who would otherwise have shut the scheme down,” Waterson
continued, adding there was a “need to think about removing regulatory barriers and developing new
models of risk sharing to allow for new options to arise.” Other suggestions made by Waterson include
the creation of hybrid DB and defined contribution (DC) schemes. The proposals put forward for a new
DB scheme would see employees share the investment risk with employers, while a modified DC
scheme would allow for some of the risk to be shouldered by an organisation, meaning the individual
pensioner would not be left with the entire burden of risk. The Conservative Party today outlined
further policies as part of the launch of their election manifesto in London. In addition to re-introducing
the earnings link to the basic state pension, the party also said it would put an end to the obligation of
buying an annuity when a pensioner reaches 75. (13/04/2010 IPE.com)

V. Irish DC pension members show more caution than DB trustees

Irish defined contribution investors are still more cautious about investing their pension assets than
defined benefit trustees, but have yet to follow the trend of moving towards passive investment,
suggests evidence presented by the Irish Association of Pension Funds (IAPF). Details of its annual
investment survey suggest DC investors are still more cautious as they have an average 12.5% of
their assets in cash, compared with 4.3% at DB schemes. Rather surprisingly, however, over 70% of
DC assets are now invested in active management strategies, explained Jerry Moriarty, director of
policy at the association. “This suggests that DC members, stung by losses in pension fund values,
remain reluctant to invest in equities. The downside of this is that if equity markets continue to recover
in 2010 as they did last year, they will lose the benefit of this upturn,” Moriarty added. The study also
found the proportion of assets in defined benefit plan now makes up 67% of all Irish pension holdings.
Again however, it is not necessarily a resurgence of interest which is responsible for this increase but,
more likely, argued Moriarty, it reflects a fall in DC contributions combined with additional cash
injections to try and fund DB pension deficits. Moriarty also noted many DB schemes are still de-
risking but recognised the schemes feel caught in a ‘Catch-22’ situation as they have to deliver a
recovery flight path over the next 5-10 years but “investing in equities in the only way to make that
palatable”. (14/04/2010 IPE.com)Economy

Economy

Economy

I. Socialists, unions and anti-globalisation organisations push for “Robin Hood” tax
European Socialists, the European Trade Union Confederation (ETUC) and anti-globalisation
organisations like Oxfam are keeping up the pressure on the European authorities to take their
proposal on introducing a “Robin Hood” tax on financial transactions seriously. European finance
ministers are meeting informally this week in Madrid where they will have a discussion on how to
create innovative financial resources for paying part of the cost of the financial crisis and for funding
ways of countering climate change and world poverty.

In depth analysis page: 11

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Events and Court Cases

Events and Court Cases

I. 22 – 23 April 2010 Conference on minimum pensions, evolution of Social security systems

and their contribution to social inclusion: Ministerial meeting
As part of the general programming of activities during the Spanish Presidency of the European Union,
the Ministry of Labour and Immigration is planning, through the State Secretariat of Social Security, to
hold a “Conference on Minimum Pensions, Maturing of Social Security systems and its contribution to
social inclusion: Ministerial Meeting of Social Security responsible”, to be held in Burgos, Spain on 22
and 23 April 2010. The aim of this meeting is to foster an exchange of experiences and opinions on
the role of minimum pensions or similar mechanisms in our Social Security systems, to help reduce
the risk of pensioner poverty. At the same time, the meeting will look at reforms implemented to
increase the contributory nature of European pension systems with a view to reaching their objectives
in terms of adequacy and sustainability. Finally, the Conference will, of course, consider the impact of
the crisis in the medium- and long-term strategies of European pension systems, whether their
maturing processes have been completed or they are still consolidating.

II. European Court of Justice Calendar"

Date Case Language Courtroom

Judgment Bressol e.a. and Chaverot e.a.- FR New Great

C-73/08 Freedom of movement for persons Courtroom
Court of Justice - Grand Chamber
Tuesday
13/04/2010 Reference for a preliminary ruling - Cour constitutionnelle (formerly Cour d’arbitrage),
09:30 Belgium – Interpretation of the first paragraph of Article 12 and Article 18(1) EC, in
conjunction with Articles 149 and 150 EC - Numerus clauses for enrolment by non-
resident students in programmes of study in the area of public health offered by the
universities and schools of higher education – Principle of non-discrimination –
Justification and proportionality of restrictive measures – Maintenance of wide and
democratic access to quality higher education for the population of the Member State
concerned – Danger of a shortage of graduates in the professional sectors
concerned, constituting a danger to public health
Advocate General : Sharpston

Opinion Commission v Germany - Freedom to DE New Great

C-271/08 provide services Courtroom
Court of Justice - Grand Chamber
Wednesday
14/04/2010
09:30 Failure of a Member State to fulfil obligations – Infringement of Article 8 in
conjunction with Titles III to VI of Council Directive 92/50/EEC of 18 June 1992
relating to the coordination of procedures for the award of public service contracts
(OJ 1992 L 209, p.1) and Article 20 in conjunction with Articles 23 to 55 of Directive
2004/18/EC of the European Parliament and of the Council of 31 March 2004 on the
coordination of procedures for the award of public works contracts, public supply

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contracts and public service contracts (OJ 2004 L 134, p. 114) – Practice of local
authorities and local authority undertakings to award contracts relating to collective
pension schemes directly and without issuing a public call for tenders
Advocate General : Trstenjak

Judgment CIBA - Freedom of establishment HU Courtroom I -

Court of Justice - Third Chamber Level 8
C-96/08

Thursday Reference for a preliminary ruling – Pest Megyei Bíróság – Interpretation of Articles
15/04/2010 43 and 48 EC – National rules requiring account to be taken, for the purposes of
09:30 determining the basis for the vocational training levy of a company established on
national territory, of the salary costs of workers employed in a branch established in
another Member State, even if the company in question is subject to an equivalent
charge, by reason of the employment of those workers, in that other Member State
Advocate General : Sharpston

Judgment Barth - Freedom of movement for DE New Great

persons Courtroom
C-542/08 Court of Justice - Fourth Chamber
Thursday
15/04/2010
09:30 French Only - Demande de décision préjudicielle - Verwaltungsgerichtshof -
Interprétation de l'art. 39 CE, et de l'art. 7, par. 1 du règlement (CEE) nº 1612/68 du
Conseil, du 15 octobre 1968, relatif à la libre circulation des travailleurs à l'intérieur
de la Communauté (JO L 257, p. 2) - Réglementation nationale prévoyant une
indemnité spéciale d'ancienneté aux professeurs d'université et dont l'incompatibilité
avec le droit communautaire, dans sa version antérieure, a été constatée par l'arrêt
de la Cour du 30 septembre 2003, Köbler (C-224/01) - Réglementation modifiée qui,
en ne prévoyant la suspension du délai de prescription prévu pour faire valoir les
droits à l'indemnité en cause qu'à partir de la date de l'arrêt précité de la Cour,
désavantage les professeurs qui ont été privés de cette indemnité en raison de la
réglementation antérieure incompatible avec le droit communautaire
Advocate General : Bot

Opinion Schwemmer - Social security for migrant DE Courtroom I -

C-16/09 workers Level 8
Court of Justice - Second Chamber
Thursday
15/04/2010
09:30 Reference for a preliminary ruling – Bundesfinanzhof – Interpretation of Article 76(2)
of Regulation (EEC) No 1408/71 of the Council of 14 June 1971 on the application of
social security schemes to employed persons and their families moving within the
Community (OJ English Special Edition 1971 (II), p. 416), as amended, and of Article
10(1)(a) of Regulation (EEC) No 574/72 of the Council of 21 March 1972 fixing the
procedure for implementing Regulation (EEC) No 1408/71 on the application of social
security schemes to employed persons and their families moving within the
Community (OJ English Special Edition 1972 (I), p. 159), as amended –
Determination of the State required to grant family benefits – Rules against
overlapping – Children residing in one Member State with their mother, who satisfies
the conditions governing entitlement to family allowances, and whose father, resident
in Switzerland and satisfying the conditions governing receipt of similar family
allowances under Swiss law, intentionally refrains from seeking payment of those
allowances in order to adversely affect his divorced wife – Kindergeld Advocate

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General : Mazák

Opinion Bâtiments and Ponts Construction et FR Courtroom III -

C-74/09 Thyssenkrupp Industrieservice - Level 6
Freedom to provide services
Thursday Court of Justice - Third Chamber
15/04/2010
09:30
Reference for a preliminary ruling – Cour de Cassation (Belgium) – Interpretation of
the second paragraph of Article 24 of Council Directive 93/37/EEC of 14 June 1993
concerning the coordination of procedures for the award of public works contracts
(OJ 1993 L 199, p. 54) and Articles 49 EC and 50 EC – Award of public works
contracts – National legislation allowing a contracting authority, first, to exclude a
tenderer by reason of its not being registered in that State, even where that tenderer
has provided equivalent certificates issued by the authorities of another Member
State and, secondly, to subject those certificates to an assessment of their validity –
Compatibility of that legislation with the provisions of Community law referred to
above. Advocate General : Kokott

In Depth Analysis

In Depth Analysis

I. Statement on the support to Greece by Euro area Members States

Following the statement by the Heads of State and Government of the Euro area on 25 March, Euro
area Members States have agreed upon the terms of the financial support that will be given to Greece,
when needed, to safeguard financial stability in the Euro area as a whole.

Euro area Members States are ready to provide financing via bilateral loans centrally pooled by the
European Commission as part of a package including International Monetary Fund financing.

The Commission, in liaison with the ECB, will start working on Monday April 12th, with the
International Monetary Fund and the Greek authorities on a joint programme (including amounts and
conditionality, building on the recommendations adopted by the Ecofin Council in February). In
parallel, Euro area Members States will engage the necessary steps, at national level, in order to be
able to deliver a swift assistance to Greece.

Euro area Member States will decide the activation of the support when needed and disbursements
will be decided by participating Member States.

The programme will cover a three-year period. The euro area Member States are ready to contribute
for their part up to € 30 billion in the first year to cover financing needs in a joint programme to be
designed with and cofinanced by the IMF. Financial support for the following years will be decided
upon the agreement of the joint programme

In order to set incentives for Greece to return to market financing, Euro area Members States loans
will be granted on non-concessional interest rates. The pricing formula used by the IMF is an

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 AEIP Newsletter • Week 15

12 – 16 April 2010

appropriate benchmark for setting Euro area Members States bilateral loan conditions, albeit with
some adjustments. Variable-rate loans will be based on 3-month Euribor. Fixed-rate loans will be
based upon the rates corresponding to Euribor swap rates for the relevant maturities. A charge of 300
basis points will be applied. A further 100 basis points are charged for amounts outstanding for more
than 3 years. In conformity with IMF charges, a one-off service fee of maximum 50 basis points will be
charged to cover operational costs.

For instance, as of April 9th, for a three year fixed-rate loan granted to Greece, the rate would be
around 5%.

The Eurogroup is confident that the determined efforts of the Greek authorities and of its European
Partners will allow to overcome the fiscal and structural challenges of the Greek economy. In this
context, the Eurogroup welcomes the budget execution in the first months of the year, which shows
that the measures taken so far are bearing fruit.

II. Socialists, unions and anti-globalisation organisations push for “Robin Hood” tax
European Socialists, the European Trade Union Confederation (ETUC) and anti-globalisation
organisations like Oxfam are keeping up the pressure on the European authorities to take their
proposal on introducing a “Robin Hood” tax on financial transactions seriously. European finance
ministers are meeting informally this week in Madrid where they will have a discussion on how to
create innovative financial resources for paying part of the cost of the financial crisis and for funding
ways of countering climate change and world poverty.

The European Parliament adopted a resolution at the beginning of March calling on the Commission
to proceed to a detailed feasibility study of the costs linked to the introduction of a tax on financial
transactions (EUROPE 10095). In another resolution adopted in a very close vote at the end of March,
it gave its support to such a tax aimed at reducing the impact of the crisis on developing countries
(EUROPE 10108). Acknowledging that such a tax would help raise significant funding, the
Commission does not believe it very clear whether this tax will have an effect on price volatility and
considers it quite likely that financial actors will circumvent the tax by going through other markets.

In a letter addressed to acting president of the Ecofin Council Elena Salgado, ETUC urges finance
ministers to take into account the clear advantages of a tax on financial transactions. Set at a 0.05%
rate, this tax will only affect the institutions engaged in purely speculative transactions, such as the
derivatives market. According to the European unions, its impact on the economy will be negligible
insofar as real economy operations take place over longer periods of time than short-term market
operations that are socially worthless.

OXFAM believes that the Commission work document is off target and that “a tax on financial
transaction of 0.05% would generate more than €400 billion every year at zero cost to tax payers”
declared Nicolas Mombrial on behalf of the organisation in a press release. He thought the
Commission's proposal to set a leverage effect for debt very timorous and risky when the EU should
be taking the lead on the question at the G20 summit in Toronto. He insisted that if other countries
were slow in coming forward, Europe should lead from the front and introduce a tax on monetary
transactions in an effort to bring order at home. (12/04/2010 Agence Europe)

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