Business Brief

NYSE pledge

Internal Market Commissioner Charlie McCreevy said yesterday (5 July) that stock markets listed in Europe would not have to comply with Sarbanes-Oxley corporate governance rules in the event of a tie-up between Paris-based exchange Euronext and the New York Stock Exchange. Investors had feared an extension of the strict US accounting rules to the entire EU sector in the event of a transatlantic merger.

EU-Russia trade deal

The European Commission proposed a free trade agreement to Russia on Monday (3 July) in the aim of reaching a broad-ranging agreement that would allow the EU access to Russia's energy distribution network. "We propose a partnership approach for energy, based on mutual interests and agreed principles," said Commission President José Manuel Barroso.

Borrowing boom

The European Central Bank warned that heavy borrowing in foreign currencies in Bulgaria and Romania could prompt local financial crises. In a report released on Tuesday (4 July), it warned that a depreciation of local currencies could lead to bankruptcies as borrowers struggle to make repayments. The credit boom has come about as a result of low interest rates.

Airline pollution

The European Parliament has voted in favour of making airlines pay the price of heavy pollution by supporting a report calling for the enforcement of emission trading rules and a tax on fuel. The sector could one day have a tailor-made emissions trading scheme if Parliamentary proposals are successful. The Commission would prefer the sector to join in the existing scheme.

Finns back duty hike

The Finnish presidency indicated that it hoped to see higher duties imposed on alcohol to correct internal market distortions. The country's imports of cheaper alcohol have been increasing since EU enlargement.

Gazprom boost

The Russian parliament has upheld the monopoly currently enjoyed by national champion Gazprom, spurning EU demands for greater access to the country's gas pipeline network. President Vladimir Putin continues to maintain that the EU will have to allow Russian firms access to its distribution networks if it wants to gain a foothold in the Russian sector.

Easyjet loses case

The Court of First Instance upheld the Commission's decision to approve a merger between Air France and KLM two years ago. Low-cost airline Easyjet had sought annulment of the Commission's decision.

This week saw the fifth anniversary of the European Commission's decision on 3 July 2001 to block GE's $41 billion takeover of fellow US company Honeywell.