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Legal concerns
- Employers’ lobby BusinessEurope raised concerns yesterday (5 September) over delays at the European Court of First Instance in reviewing the European Commission’s merger decisions. In a letter to Commission President José Manuel Barroso, the lobby said that delays ranging from 12 months to several years created legal uncert-ainty for companies planning tie-ups. At stake, it said, was the global competitiveness of European firms.
Suez-GdF merger
- Suez and Gaz de France announced on Monday (3 September) revised plans to merge their gas and electricity operations. The €90 billion deal, following 18 months of negotiation, would involve the partial spin-off of Suez’s waste and water division, a recent condition brokered by French President Nicolas Sarkozy. The new company will be the biggest buyer and seller of gas in Europe.
Economic vigilance
- Joaquín Almunia, the European commissioner for economic and monetary affairs, predicted yesterday that the EU economy would weather the recent sub-prime mortgage crisis, but advised vigilance in case of further turbulence. Growth this year, he said, would not top the Commission’s predictions of 2.6% for the eurozone and 2.9% for the EU27.
ECB ‘ready for action’
- The European Central Bank (ECB) has indicated that it stands prepared to take more action to boost liquidity if required. In a statement released yesterday, the ECB said it was "closely monitoring" the situation and that it stood ready to "contribute to orderly conditions in the euro money market". The bank’s governing council meets today (6 September).
Polish shipyards
- The Commission is resisting Polish demands that it scale down its conditions for state aid for the Gdansk shipyard. EU investigations launched in 2005 revealed that Polish shipyards had received illegal state aid amounting to at least €1.3 billion since 2004. Aid could be deemed legal only if accompanied by a reduction in production capacity, a move that would cause hundreds of job losses.
Kazakh demands
- Kazakhstan said on Tuesday (4 September) that it would be seeking $10bn (€7.3bn) in damages from Italian energy group Eni for delays in developing the Kashagan oilfield in the Caspian Sea. The threat came after Eni presented the government with a revised development plan for Kashagan delaying oil production until 2010 and doubling the cost of the first production phase. The Kazakh government has demanded improved terms at Kashagan, where under the production-sharing contract, investors can delay payment of royalties until development costs are recovered.
The European Commission is considering plans for duties on imports of citric acid from China.
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