The president of the European Central Bank underscored the need for action in Washington at the meetings of the International Monetary Fund and the World Bank. “The effectiveness of this exercise will depend on the availability of necessary arrangements for recapitalising banks … including through the provision of a public backstop,” Mario Draghi said on Friday. “These arrangements must be in place before we conclude our assessment,” he said. But the ministers’ talks face an additional hindrance because Germany’s finance minister, Wolfgang Schaeuble, is not expected to attend the two-day Luxembourg meeting. Germany, Europe’s biggest economy, in talks to form a new government. During the region’s debt turmoil, the European Union conducted two bank stress tests, considered flops for blunders such as giving a clean bill of health to Irish banks months before they pushed the country to the brink of bankruptcy. The ECB’s new checks are seen as the last chance to come clean for the euro zone as the bloc tries to set up a single banking framework, known as banking union. The debate opens amid ebbing political enthusiasm for banking union – originally planned as a three-stage process involving ECB bank supervision, alongside an agency to shut failing banks and a system of deposit guarantees. It would be the boldest step in European integration since the crisis. “We have to find a solution now,” said Michel Barnier, the EU Commissioner in charge of financial regulation, urging faster progress in the slow talks. “The next financial crisis is not going to wait for us.” ANGLO-GERMAN AXIS? In one sign of the divisions, Britain has repeatedly refused to sign off on the first pillar of the banking union framework, allowing the ECB monitor banks. Having earlier agreed, London now wants additional assurances from ministers this week that Britain, which is outside the euro and polices its own banks, will not face interference from the ECB-led euro bloc. Britain is likely to find a sympathetic ear in Berlin, which wants to keep London on side in its push to prevent stricter EU emissions rules to protect its luxury car makers.
natural gas lured investment. The $45.9 billion spent makes it almost certain that annual investment in renewables and energy-smart technologies will fall for the second consecutive year from $281 billion in 2012, Bloomberg New Energy Finance said in a statement. Investment in the quarter was 20 percent lower than the same period last year as spending in China, the U.S. and Europe fell. The U.S. saw the largest decline, sliding 41 percent to $5.5 billion, according to the London-based research company. Europes clean-energy industry is retrenching after subsidies were reduced in nations from Germany to Spain, which helped propel record growth in previous years. Cheap gas in the U.S. driven by a shale-drilling boom and a reduction in Chinas spending on wind power wind power also contributed to the overall decline, the London-based consultant said One of the most facepalm-worthy parts of all of this is that supporters of the Obama administrations regulatory war-on-coal largely and blithely rely on the argument that because the coal-substitute of natural gas has been doing so well, coal is naturally entering its sunset years anyway and will shortly fall prey to the economical powers of creative destruction but strangely, they often forget to mention that coal could easily regain market share in the event that natural gas prices begin to rise for whatever reason The Obama administration is effectively barring that from happening on the domestic scene, while foreign demand for coal is growing; you need look no farther than Europe as a current Exhibit A for that eventuality. The editors of RealClearEnergy , therefore, would rather the Continent spare us the lectures, emphasis mine: What happens when you dont frack and you decide to shut down nuclear? You return to coal. Thats the lesson that Europe is learning these days.