Professional Documents
Culture Documents
13 – 17 September 2010
Table of Contents
EU Financial Services.......................................................................................... 2
I. Michel Barnier welcomes “ambitious” agreement on banking capital requirements by
Basel committee ................................................................................................. 2
II. European Commission not planning to ban “naked short selling” at EU level .......... 2
EU Health............................................................................................................ 3
I. Parliament calls for decent health care for older people ........................................ 3
II. Council adopts position on cross-border health care patient rights ........................ 4
III. Council adopts conclusions on anti-cancer action............................................... 4
EU Social Affairs ................................................................................................. 4
I. Northern Cyprus aims to increase retirement age from 50 to 60 ............................ 4
II. EDHEC: No new evidence SRI funds create financial value ................................... 5
III. Shortfall threatens entire Dutch pension system, says regulator.......................... 5
IV. Donner calls on IASB to accommodate Dutch pension arrangements .................... 6
Events and Court Cases ...................................................................................... 7
I. Upcoming Events............................................................................................. 7
II. European Court of Justice Calendar................................................................... 8
In Depth Analysis ............................................................................................... 8
I. Council adopts position on cross-border health care patient rights ......................... 8
AEIP Newsletter • Week 37
13 – 17 September 2010
EU Financial Services
I. Michel Barnier welcomes “ambitious” agreement on banking capital
requirements by Basel committee
In a press release published on Monday 13 September, the commissioner for the internal market
declared: “I welcome the ambitious agreement on capital and liquidity requirements for the
banking sector, reached yesterday evening in Basel by the Group of Governors and Heads of
Supervision of the central banks”. Michel Barnier said that he was “convinced” that this
agreement was based on “the right balance” and learning “the lessons of the crisis in requiring
better capitalisation for our banks and larger liquidity conditions”, which also takes into account
"the essential role of banks in the European and global economic recovery". Recognising that the
agreement would have “a major impact in Europe” as it is home to half of the world's global
banking assets, he explained that the transition period for reaching these ambitious objectives is
the right one and is “sufficiently long” to allow for gradual improvements and subsequently not
put economic growth in danger. Once the new rules are endorsed by the G20 (Seoul summit in
November), the Commission will propose legislative texts in the first quarter of 2011, which will
translate the principles set out in European legislation. The other side of the industry is obviously
singing a very different tune. The European Banking Federation (EBF) considers that the new
solvency ratios will require greater efforts and will have significant consequences on the volume
and cost of financing the economy. The Federation's secretary general, Guido Ravoet, warned in
a press release that “in Europe, 75% of loans to the private sector are insured by the banks, as
opposed to 25% in the US”. As well as the high cost of these measures, estimated at several
hundreds of billions of euros, the EBF is concerned that increased capital requirements could be
met with a limited range of financial instruments. It is also opposed to additional and systemic
obligations imposed by financial institutions. Finally, the European banks are again criticising the
absence of a quantitative impact study on all reforms begun. After a first wave of decisions
focusing on the quality of own funds (EUROPE 10190), the Basel Committee (which brings
together central bank governors and banking supervisors from 27 countries) took the following
decisions: - by January 2015, minimum assets capital will increase from 2 to 7% of assets: this
ratio is made up of 4.5% of “core” capital (reserve assets and results) and 2.5% from an
additional “security cushion”; - by January 2015, the minimum ratio of own funds (ratio Tier 1)
will increase from 4 to 6%; - national supervisors will create a second so-called “counter-cyclical”
mattress during healthy economic periods in an effort to tackle crisis periods-within a band
ranging from 0% to 2.5% of capital ; - a lever ratio, which is not based on risk will be set up and
could become compulsory by January 2018. Called on to provide injections of public money into
the capital of the banks by 2018, member states will have had to integrate the new rules into their
domestic law before 2013. (13/09/2010 Agence Europe)
13 – 17 September 2010
Commission is planning to restrict short selling but not ban it. The seller will have to,
at least, agree with a third party to isolate and reserve assets so that they can effectively be
delivered at the date when payment is due. A senior official at the Commission explained that a
ban would be disproportionate but that they wanted to have more guarantees. This expert also
said that the difference lies in the fact that “you will not have to physically lend” the asset in
question. The commissioner for the internal market, Michel Barnier, said that if the operator is
unable to deliver the asset in three days, he would be obliged to pay it in cash on the fourth day
and the regulator will be able to impose a fine. Until then, nine member states (Austria, Belgium,
France, Germany, Greece, Lithuania, Luxembourg, Portugal, Spain) have banned short selling.
The legislative proposal is aimed at compelling operators to communicate their positions to the
market supervisors, once a certain threshold has been reached. The supervisors will therefore be
able to better protect against systemic risk. Market operators executing commands involving
short selling will also have to operate within a flagging system and exchange platforms will
publish a daily summary of order volumes using such techniques. An information system to
supervisors is also being proposed on short selling, which will focus on sovereign debt assets.
Emergencies. In the event of any market emergency, a supervisor will be able to take
exceptional measures, which could involve the temporary suspension (three months, with a
possible extension) of short selling. The financial crisis effectively demonstrated that this
technique could exacerbate falls in values on the stock markets. Supervisors may also be allowed
to ban, over the course of the day, short selling when the value has fallen by 10% in a single day.
In the event of cross-border crises, the future European Securities and Markets Authority
(ESMA), planned in the “financial supervision” package, will coordinate national level action. It
will issue an opinion on these assets and will be the only authority allowed to ban asset short
selling in the EU. CDS. The Commission is proposing a framework for CDS, derivatives. The
misuse of this product made it more difficult for Greece to refinance its sovereign debt. Financial
actors will be called on to notify regulators of their positions on CDS, on the basis of certain
thresholds for each member state and which the Commission will determine. In the event of any
crisis situation arising, a supervisor will be able to impose the same restrictions on CDS as those
advocated for short selling. (15/09/2010 Agence Europe)
EU Health
I. Parliament calls for decent health care for older people
With its adoption, by show of hands in Strasbourg on Thursday 9 September, of the resolution
put by Pervenche Berès (S&D, France) and Elizabeth Lynne (ALDE, UK) on long-term care for
older people, the European Parliament: - Called on the Commission and member states to take
into account the needs of informal carers, who provide a significant proportion of care for older
people, and to take concrete measures to support and safeguard this resource via training, respite
and measures to reconcile work and family life; - Regretted that, in many member states, the
funding and provision of specialist geriatric medicine has been reduced over the years, … (which)
has in many cases led to a reduction in the quality of care provided to older people and which, at
times, constitutes unfair discrimination against them; - Called on the member states to provide
support, as a matter of priority, for the establishment of home palliative care units; - Asked the
Commission to: - collect data and draw up a summary of the institutional, community and home
care infrastructure for older people in each member state; - conduct research to establish the
number of deaths among older people in long-term care that are attributable to malnutrition or
dehydration; - develop an integrated active ageing strategy which seeks to involve the elderly in
social and cultural activities, and take measures to ensure that they have equal access to welfare
services. (10/09/2010 Agence Europe)
AEIP Newsletter • Week 37
13 – 17 September 2010
EU Social Affairs
I. Northern Cyprus aims to increase retirement age from 50 to 60
The Turkish Republic of Northern Cyprus is preparing for a pension reform over the coming
months. Türkay Tokel, minister for labour and social security in Northern Cyprus, told IPE the
ministry of labour and social security would present six alternative models on increasing
retirement age to the government this week. All six models will gradually increase retirement age
from the current 50 years to 60 over the coming years. The ministry has worked on the project
for the past six months. Tokel said: "If the government accepts our projections, we will draft a
law on the reform as soon as possible, after which the draft will be debated at the parliament and
AEIP Newsletter • Week 37
13 – 17 September 2010
enacted into law. "We can bring a change in the system during 2010, but this will, of
course, depend also on the political landscape. "North Cyprus has one of the lowest retirement
ages among south European countries, and this is no longer sustainable. "The finer details of the
reform are yet to be decided on, but what I can say in a short is that, after the reform, retirement
at 50 will just not be possible." The ultimate goal of the reform is to manage the social security
funding gap in North Cyprus, which, according to Tokel, is growing by TRY10m (€5.2m) each
month because of the lack of balance between pension payments and social security
contributions, increasing number of pensioners and growing unemployment. The population of
the Turkish Republic of Northern Cyprus currently stands at some 300,000, with approximately
100,000 in active employment and 27,505 retired. The number of pensioners grows by some 100
people each month. Pension payments currently cost North Cyprus state budget TRY40m a
month, but income from premiums collected totals only TRY30m. Unemployment, which stands
at some 12%, according to the State Planning Agency, is most severe among youths between 15-
24 years (31.4%). "We are proposing a step-by-step transition to a new system, which is likely to
raise less opposition than a sudden sharp increase in retirement age," Tokel said. (14/09/2010
IPE.com)
13 – 17 September 2010
Despite the volatility on the financial markets, "we can't keep on waiting to take
measures", she said, indicating that pension funds could not afford to wait for a rise of long-term
interest rates that might not materialise. In Kellerman's opinion, there are only two options for
reaching a sustainable balance – by lowering pension expectations through a lower accrual or
through a life expectancy-dependent pension, or by decreasing certainty through a shift to
defined contribution arrangements. The DNB director said the 14 pension funds facing rights
cuts must show they could avoid a discount by proving before 1 November they could raise their
funding ratios to the required minimum of 105%. She reminded the representatives that all
pension funds with a recovery plan must assess whether they were still on the mapped-out route
to recovery at the end of this year, and then decide to take additional measures, which must be
implemented by 1 April 2012. However, Kellerman said the DNB has proposed the introduction
of a waiting time of nine months as a default for submitting a recovery plan in the case of
underfunding. During the meeting, social affairs minister Piet Hein Donner indicated that the
financial assessment framework (FTK) needed adjusting to allow a life expectancy-dependent
pension, as well as a pension based on economic developments. Frans Prins, director of the
Foundation for Company Pension Funds (OPF), responded positively to Donner's promise to
involve the pension funds in defining balanced risk-sharing, acceptable risks and a matching
FTK. "If we can agree in time on how to deal with the increased longevity, the market valuation
of the liabilities and the assumptions for future returns, the pension funds hopefully don't need
to announce wholesale rights cuts for 2012," he said. (14/09/2010 IPE.com)
13 – 17 September 2010
Thursday 23 September - Friday 24 September, Faculty of Law, Zeger Van Hee Auditorium,
Tiensestraat 41, 3000 Leuven, Belgium
10:30 - 17:00 The social security of moving researchers - The Institute of Social Law and the
Centre of Social Policy of the KU Leuven organize on the 23rd and 24th of September 2010 a
conference on the social security of moving researchers. This Conference is held in Leuven in co-
organisation with DG Research of the European Commission, the Belgian Federal Public Service
on Social Security, the League of European Research Universities and the European Institute of
Social Security.
Friday 24 September
MCE Conferece Centre Rue de L’Aqueduc 118 1050 Brussels, Belgium
09:00 - 17:30 European Conference on Minimum Income and Social Standards - The European
Anti-Poverty Network (EAPN) is organising a major conference in connection with the
European Year for Combating Poverty and Social Exclusion, 2010. The aim of the conference is
to achieve consensus around the need for progress on guaranteeing an adequate minimum
income for all, which is necessary in order to lead a dignified life. An adequate minimum income
as the basis for a fair EU. The conference will be supported by the Belgian Presidency of the EU
(July to December 2010) and organised by the European Commission (PROGRESS programme)
and the Belgian Ministry.
Tuesday 28 September, Comité des Régions, Rue Belliard 101, 1040 Brussels, Belgium
10:00 - 16:30 Beyond tax competition : towards coordination or harmonization ?
The conference will last one day and will be held at the Committee of the Regions. The event will
consist of two panels in which ten speakers will consider the future of taxation in the context of a
crisis which has weakened the sustainability of the public debt in Europe and the pressures on
the European social model, arising from globalisation, the ageing of the population and the rise in
unemployment linked with the reduction in growth for the decade to come.
13 – 17 September 2010
discuss the priorities for financial regulation and supervision required to strengthen
financial stability and economic growth.
Thursday 30 September - Stanhope Hotel, Balmoral I and II, Rue du Commerce 9, 1000 Brussels,
Belgium
08:30 - 18:30 Making Europe Fit for Work - The aim behind this European conference is to
determine to what extent the EU health sector is properly equipped to provide rapid intervention
for people affected by these problems, possible reinsertion in employment and other forms of
assistance.
In Depth Analysis
I. Council adopts position on cross-border health care patient rights
On Monday 13 September in Brussels, the Council adopted its position on a draft directive to
facilitate safe and good quality cross-border health care and promote health care cooperation
between member states. The Polish and Slovakian delegations voted against and Romania
abstained. The compromise reflects the Council's intention to fully respect the case law of the
European Court of Justice on patients' rights in cross-border healthcare while preserving member
states' rights to organise their own healthcare systems. The draft directive provides clarity about
the rights of patients who seek health care in another member state and supplements the rights
that patients already have at the EU level through the legislation on the coordination of social
security schemes [EU regulation 883/2004].
as a general rule, patients will be allowed to receive health care in another member state and be
reimbursed up to the level of reimbursement applicable for the same or similar treatment in their
national health system if the patients are entitled to this treatment in their country of affiliation;
in case of overriding reasons of general interest (such as the risk of seriously undermining the
financial balance of a social security system) a member state of affiliation may limit the
application of the rules on reimbursement for cross-border health care; member states may
manage the outgoing flows of patients also by asking a prior authorisation for certain health care
AEIP Newsletter • Week 37
13 – 17 September 2010
(those which involve overnight hospital accommodation, require a highly specialised
and cost-intensive medical infrastructure or which raise concerns with regard to the quality or
safety of the care) or via the application of the "gate-keeping principle", for example by the
attending physician;
in order to manage incoming flows of patients and ensure sufficient and permanent access to
health care within its territory a member state of treatment may adopt measures concerning the
access to treatment where this is justified by overriding reasons;
member states of treatment will have to ensure, via national contact points, that patients from
other EU countries receive on request information on safety and quality standards on their
territory in order to enable patients to make an informed choice;
the cooperation between member states in the field of health care is strengthened, for example in
the field of e-health and through the development of European reference networks which will
bring together, on a voluntary basis, specialised centres in different member states;
the recognition of prescriptions issued in another member state is improved; as a general rule, if a
product is authorised to be marketed on its territory, a member state must ensure that
prescriptions issued for such a product in another member state can be dispensed on its territory
in compliance with its national legislation;
sales of medicinal products and medical devices via internet, long-term care services provided in
residential homes and the access and allocation of organs for the purpose of transplantation fall
outside the scope of the draft directive;
with regard to the member state of affiliation (which concerns in particular the reimbursement of
healthcare costs of a pensioner living in the EU outside their home country and receiving health
care in a third member state), the Council's position provides that as a general rule the member
state competent to grant a prior authorisation according to Regulation 883/2004 (i.e. the member
state of residence) reimburse the cost of cross-border health care of pensioners. If a pensioner is
treated in his country of origin, this country would have to provide health care at its own
expense;
concerning healthcare providers, the Council's position seeks to ensure that patients looking for
health care in another member state will enjoy the quality and safety standards applicable in this
country, independently of the type of provider; furthermore, the Council agreed that member
states may adopt provisions aimed at ensuring that patients enjoy the same rights when receiving
cross-border health care as they would have enjoyed if they had received health care in a
comparable situation in the member state of affiliation;
the Council's position includes a double legal basis in the draft directive, striking a balance
between the case law of the European Court of Justice on the application of Article 114 to health
services and the member states' competencies recognised by the Treaty for the organisation and
provision of health services (according to Article 168 on public health).
The Council points out in a press release that the draft directive is part of the social agenda
package of 2 July 2008, focusing on a triple objective: to guarantee that all patients have care that
is safe and of good quality; to support patients in the exercise of their rights to cross-border
health care; and to promote cooperation between health systems. The aim of the second
objective is in particular to codify the case law of the Court of Justice relating to the
AEIP Newsletter • Week 37
13 – 17 September 2010
reimbursement of cross-border health care, avoiding a “third method” of
reimbursement (in addition to Regulation 883/2004 and the draft directive). The Council's
position will now be sent to the European Parliament for a second reading, concludes the press
release. (14/09/2010 Agence Europe)