*** LOÏC GRARD, PASCAL KAUFFMANN (Eds.): L'Europe des Banques. Approches juridique et économique. Editions A. Pedone (13 rue Soufflot, F-75005 Paris. Tel: (33-1) 43540597 - Fax: 46340760 - email: librairie@apedone.net - Internet: http://www.pedone.info ). 'Droits Européens' series. 2010, 231 pp, €34. ISBN 978-2-233-00602-8.
Banking has always been of capital interest to both economists and lawyers, particularly within the European Union as it is a key component of the Single Market on several levels - providing services to companies and households, capital mobility, Single Euro Payment Area, tackling money-laundering and so on.
The traditional interest in banking in the academic world has been geared down since the subprime crisis that laid the banks low until they passed it on to their customers and thereby on to the wider economy in general. This book is an eloquent illustration of that, in which the authors provide a virtually exhaustive account of the state of the European banking system at the turn of the decade. The authors examine structural (timeless) issues as well as questions raised by the banking crisis and its current impact, in other words the the crisis in the 'contemporary bank system,' the sheer scale of which one only realises, argues Prof. Pr. Kauffmann of Montesquieu-Bordeaux IV University in France, when one understands that alongside the fact 'that it has turned into the biggest recession in the post-war period in the developped world,' that to a greater or lesser extent, it also challenges, 'given the way that it developped and the way that it spread, virtually all major components of the banking profession.' The same economist explains in the introduction that European banks 'failed in their assessment of credit risk' because they become full participants in the 'vast securitisation industry,' soon adding solvency problems to their cash-flow problems. They then acted in the classic manner by becoming extremely reluctant to lend money, even though lending would provide better guarantees, and the banking crisis was in this way transferred to the economy as a whole to such an extent that virtually all European Union Member States went into recession.
The book is divided into three parts. The first examines lending establishments in the form of banks (drawing up a balance sheet of the Single Market's concentration and competition, the big commercial banks of 'old' Europe 'conquering' Eastern Europe, and examining the contents of bank regulations and surveillance in the light of the crisis).
The second section extends this reflection by looking very directly at the main consequences of the crisis for the European banking system (the historical perspective of bank regulation, currency and credit; hiatus with regard to bank regulation and control between the Single Market and 'overly national regulation,' to such a point that the crisis rendered the 'current supervision system obsolete,' so, argues Prof. Kauffmann, it will have to be replaced by 'a fully federal system'; the tricky issue of bailing out struggling banks with public cash; and the European Union's attitude to tax havens and regulatory havens).
The third section looks at questions dealing more specifically with the relation between banks and their customs. This is a clear, detailed and, far more importantly, an enlightening read.
Michel Theys
*** KAI A. KONRAD, TIM LOSHE: Einnahmen - und steuerpolitik in Europa: Herausforderungen und Chancen. Peter Lang (1 Moostrasse, Postfach 350, CH-2542 Pieterlen. Tel: (41-32) 3761717 - Fax: 3761727 - email: info@peterlang.com - Internet: http://www.peterlang.com ). 2009, 171 pp, €31-80. ISBN 978-3-631-59256-4.
On the economic front, Europe was formed mainly by introducing common trade and monetary policies, leaving other areas of the economy in the hands of national leaders. The policy that national capitals are most keen on is taxation - both in economic terms (allowing them to adjust economic policy as they see fit) and political (taxation is a potent symbol of national sovereignty and national democracy). The existence of a range of different tax systems in a single market incurs the risk of them competing with one another and this is why the European Union is pushing for harmonisation. Although most aspects of tax policy remain in the Member States, some legal measures restrict where possible Member States' ability to exercise damaging tax competition. Due to the inclusion in EU law of tax and budget provisions, case law has developped with appeals lodged by individuals suffering from double taxation, for example, and companies doing business in more than one Member State. The rulings have got the Member States to make great progress in moving towards a more harmonised taxation system within the European Union.
Both aspects - economic and legal - are considered in this book following on from a conference at the Free University of Berlin in November 2008. The first two articles look at the legal problems surrounding European tax policy, with Charles Blankart and Gerrit Koester analysing developments in legislation from the signing of the Rome Treaty to ratification of the Lisbon Treaty, and Prof. Christian Waldhoff of Bonn University analysing the legal problems arising in European tax law. On the economic front, several challenges need to be addressed in the EU where greater tax policy harmonisation or, at least greater cooperation, seem inevitable in the long-term. Avoiding economic competition by avoiding tax competition is a challenge to be taken up in the field of corporate taxation. To this end, the Commission has unveiled several plans, one of the most ambitious and developped of which is for the creation of a Common Consolidated Corporate Tax Base (CCCTB), a subject discussed by Prof. Clemens Fuest of Oxford University. In the same spirit, the European political world is coming under increasing pressure from small business to speedily harmonise tax rules in the EU due to the huge problems faced by small business in setting up subsidiaries in other Member States. Big companies have the luxury of investing money in seeking the most advantageous tax system for their purposes, but the cost for small businesses is exorbitant. Kai A. Konrad devotes a chapter to this subject, which the CCCTB should help solve. Another economic issue connected with taxation in Europe, and a highly controversial one at that, is also examined in the book, namely the division of income from any EU tax that might be introduced in the future. This is a very comprehensive book on a highly complex subject, whose political sensitivity is bound to increase…
(JD)
*** ROSWITHA HOFMANN: Die Konstruktion von Differenz im Diskurs zur « Wissensgesellschaft ». Peter Lang (1 Moostrasse, Postfach 350, CH-2542 Pieterlen. Tel: (41-32) 3761717 - Fax: 3761727 - email: info@peterlang.com - Internet: http://www.peterlang.com ). 2009, 178 pp, €29-70. ISBN 978-3-631-59285-4.
Europe must change in order to be in a position to take up tomorrow's challenges. In the 'Lisbon Strategy,' the European Union referred to a knowledge-based economy as a way of returning to economic growth. Many people talk these days about a 'knowledge society' as a means of achieving this economic model, Wissensgesellschaft in German, which is described as indispensable. In this book, Roswitha Hofmann examines the subject and draws lessons for society. She explains that this model of society could lead to greater social exclusion because it would make economic growth more important than social aspects, particularly the concern for integration. Roswitha Hofmann therefore queries this idea of a new economic model at a time when no government in the Western world doubts its validity and in fact the model is quoted as the justification for a raft of reforms at EU level in particular. The question of the social fallout of the knowledge society is rarely looked at, hence the interest of this important research where the author examines the example of policies for elderly people in order to connect the theory (of which there is plenty in the book) with practice. The first three chapters make an introductory analysis of the information society model and how it is being used by politicians. Use of the term 'knowledge-based society' is then studied, along with the theory behind it in the light of the existentialist and dualist dimensions. The book ends with an analysis of European discourse, focussing on the European Union's institutional system, once again highlighting policy for elderly people.
(JD)
*** MASSIMO MEROLA, DENIS WAELBROECK (Eds): Towards an optimal enforcement of competition rules in Europe. Time for a Review of Regulation 1/2003? Etablissements Bruylant (67 rue de la Régence, B-1000 Brussels. Tel: (32-2) 5129842 - Fax: 5119477 - email: jean@bruylant.be - Internet: http://www.bruylant.be ). 2010, 501 pp, €95. ISBN 978-2-8027-2917-4.
This book from the Global Competition Law Centre that has been active at the College of Europe in Bruges since 2004 looks at enforcement of EU Regulation 1/2003 and suggests way of improving it through the analysis of a panel of legal experts from academia and private practice. Five years after the regulation was first implemented, the dominant opinion is that it is one of the most successful anti-trust laws but there is still room for improvement. The Global Competition Law Centre's research aims to contribute to the debate about antitrust and by inference also to the introduction of new legislation in this domain. The report was presented at the centre's 2009 AGM. It makes an empirical analysis of problems encountered in enforcing Regulation 1/2003 and makes a series of recommendations to the European Commission following on from the Commission's 2009 report. It emerges from the research that few changes need to be made, but the ones that are required are far-reaching. The authors call for greater legal certainty, greater transparency in the European Competition Network and changes to the penalties system. The book examines the connection between European law and national law, particularly how one decides where EU law takes precedence over national law. Existing systems for enforcing EU directives and the verification that national courts apply the EU rules coherently are also studied. The book considers international cooperation, recommending legal globalisation. The second section of the book sees members of the Commission's legal department examine the issues and suggestions addressed in the first part of the book. Needless to say, this is a book for legal experts.
(NDu)
*** SUSANNE DRÖGE, OLIVER GEDEN: Integration der europäischen Energiemärkte. Notwendige Voraussetzung für eine effektive EU-Energieaussenpolitik. Stiftung Wissenschaft und Politik, Deutsches Institut für Internationale Politik und Sicherheit (3-4 Ludwigkirchplatz, D-10719 Berlin. Tel: (49- 30) 88007 0 - Fax: 88007100 - email: swp@swp-berlin.org - Internet: http: //http://www.swp-berlin.org ). "SWP - Studie" series, No. 13. 2010, 32 pp.
Energy issues have never been so urgent in Europe in terms of both security of supply and relations with the EU's neighbours. The EU's energy reserves are running out and dependence on Russian imports is growing. One of the solutions mooted, backed by the European Commission among others, is to integrate the EU energy market. Several obstacles arise, however, like the institutional procedures to be followed and the fact that Member States still have the right to veto decisions, not to mention national preferences. For example, Germany is taking an unprecedentedly unilateral approach by investing in the Nabucco gas pipeline. This shows that the challenges are as huge as they are complex. Susanne Dröge and Olivier Geden describe the challenges and comment upon them. They are obviously connected with the problem of energy itself, but also touch on the EU's international relations. The first section of the book looks at the EU energy market and its requirements and inconsistencies, reviewing the foundations of energy policy in Europe. Such a description is necessary if one is to fully understand the problems facing Europe and therefore the challenges to be taken up and how this can be done. The second section looks in greater detail at integration of national markets. The tricky question of gas and oil pipelines is also addressed, a constant source of tension among the Member States. It is here that EU27 'energy solidarity' is explored. The third chapter looks at the European Union's foreign policy for energy-related matters, the authors considering its future potential against a backdrop of integration of national energy markets. The priorities for a better foreign policy in this domain and future options are also described and discussed.
(JD)