Business in Brief

E.On golden share

Internal Market Commissioner Charlie McCreevy has written to the German government asking them for suggestions how to end the country’s golden share in energy giant E.ON-Ruhrgas. The shareholding was established in 2002 when E.ON took over Ruhrgas and prevents non-German companies taking control of the gas supplier. The request came as the Commission is due to decide whether to take action against Spain for conditions it has imposed on E.ON’s planned bid to acquire Spanish energy firm Endesa.

Socialist setback

German Socialist MEP Evelyne Gebhardt lost her battle to introduce changes to the services directive on Tuesday (24 October). MEPs voting in the internal market committee chose to preserve the compromise achieved by member states in July following the Parliament’s decision to scrap the ‘country of origin’ principle, allowing companies to set up shop without registering with local authorities. The Commission will now issue a declaration clarifying issues relating to application of the law before a vote in plenary next month.

Poles fight bank rap

The Polish government is disputing charges that a new authority responsible with supervision of the banking sector lacks political independence.

Under a new law, the country’s central bank has been divested of its former responsibilities, which have been handed over to the so-called Financial Supervisory Commission. Charlie McCreevy says that the new law poses a threat to financial stability and may hinder adoption of EU financial legislation on risk management.

Grey days for banks

The European Central Bank (ECB) said yesterday in its annual report on EU banking structures that banks could suffer a loss of income as a result of an ageing population due to lower demand for consumer credit and pensions. These losses could be offset by new asset management and advisory services targeting older people, the ECB suggested.

Cash still king in EU

EU citizens still prefer to make payments with cash, according to research carried out by ESTA, a trade organisation representing cash industry logistics businesses. The results, released today (26 October), show that 64% of respondents from eight EU countries believe that cash, as opposed to electronic payment methods, plays an important role in the everyday functioning of society. The research is a reaction to the growing market dominance of banks offering card payment services.

The UK government has given a cautious welcome to a compromise text on working hours produced by the Finnish presidency of the EU.