Europaweit

“Europe-wide.” A controversial Arte documentary has drawn attention to the new EU water guideline the European Commissioner for Internal Market and Services Michel Barnier (of Nicolas Sarkozy’s UMP party) is about to issue in which local European government water projects will accept bids from all of Europe. Water activist Jean-Luc Touly warned the current plans for the guideline will make it difficult for public utilities to compete against profit-driven private utilities that are, he said, not primarily motivated by consumers’ best interests. 80% of the French water market has been privatized, the 2010 Arte documentary “Water Makes Money” claims to show instances of corruption in that French privatization and there was an increase in French water quality problems post-privatization, Touly said.

Around the world, many privatization contracts appear to have gone to subsidiaries of just a few big companies such as Bechtel (USA), Enron (USA, now spectacularly bankrupt), RWE (Germany) and Suez/Veolia (France). Opening privatization of city water utilities to Europe-wide bidding might encourage reductions in international competition among these providers.

(Oy ROPE a v eye t.)

 

Neue Auflagen für inländische und ausländische Banken

“New requirements for domestic and for foreign banks.” A week after the EU passed a new package of bank reforms on 16 Apr 2013 intended to force European banks to operate on a more stable basis, an EU commissioner sent a letter to the USA’s Federal Reserve criticizing the Fed’s intention to impose similar terms not just on US banks within the US but on foreign banks in the US as well.

The key points in the Fed’s proposal would be to require large foreign banks to create North American holding companies for their activities there and to meet the standards US banks must fulfill for capital reserves and liquidity buffers in order to make the banks less vulnerable to failure. The Fed said in addition that the new rules were intended to mitigate risk from foreign banks’ recent tendencies in the USA to bet more strongly in capital markets, on short-term capital. The proposed provisos would apply for “large” foreign banks in the US, defined as having >$50 billion internationally and >$10 billion in the USA. Such as Barclays and the embroiled-in-scandal Deutsche Bank, “both of which have attempted to use modifications under corporate law to avoid stricter constraints in America” and both of which have received large bailouts from US taxpayers despite being foreign, the F.A.Z. pointed out.

This seems like a smart initiative taken by the US government and apparently before other governments such as the EU’s. There are dystopian science fiction novels about future earths in which only domestic banks are regulated and foreign banks go a-raiding abroad until they don’t much resemble banks any more.

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