April 26, 2024

End Roaming Charges Across Europe, E.U. Chief Says

BRUSSELS — The European Commission president, José Manuel Barroso, called on Wednesday for an end to the high fees charged for making mobile phone calls across national borders, seizing on one of the few truly popular European initiatives at a time of rising skepticism about the European Union.

In his State of the Union address before the European Parliament in Strasbourg, Mr. Barroso threw his support behind a plan that would phase out roaming fees starting in 2014 as part of a wider overhaul of the telecommunications sector.

European authorities have already “dramatically brought down roaming costs,” he said, and the latest proposal will go further to “lower prices for consumers and present new opportunities for companies.”

The European Union already caps roaming fees, and Neelie Kroes, the Union’s commissioner responsible for telecommunications, suggested in May that the fees be ended. Mr. Barroso’s support for breaking down barriers between telecommunications markets should give the initiative added momentum, but it comes as France, Germany and Britain have grown more wary of giving Mr. Barroso and the commission more powers.

During his speech, Mr. Barroso also highlighted the advances being made by the economy, saying that “recovery is within sight.”

But on a day when the French government said it would miss its deficit target this year and Portugal called for an easier deficit goal in 2014, Mr. Barroso also warned that “even one fine quarter doesn’t mean we are out of the economic heavy weather.” Many Europeans, including the 26 million people who are unemployed, still face hardship, he said.

Against the backdrop of such thorny issues, the question of mobile phone roaming charges was a relatively easy and straightforward one for Mr. Barroso to highlight. When they cross borders, the fees Europeans pay for mobile calls or Internet access increase sharply. That, in turn, has caused travelers in Europe to switch off or limit their phone use — a situation that the industry says is slowing the development of some services.

Yet many companies have already objected to the initiative. Roaming charges have been subject to a variety of caps since 2007. Ms. Kroes’s proposal must be approved by the European Parliament and by European governments before becoming law and is likely to face ferocious lobbying because roaming charges make up a big chunk of telecommunications operators’ profits.

In a sign of the battle to come, Anne Bouverot, the director general of the GSMA, a telecommunications industry group, said in a statement Wednesday that the focus of the sector reforms should be “increased investment in Europe’s telecoms infrastructure” as part of a “more thorough and comprehensive approach.”

On Wednesday, Ms. Kroes called for people to be allowed to switch operators when abroad as a way of putting pressure on the industry to offer better deals. She also called for operators to be allowed to forge alliances to offer cheaper calls and Internet services across the European Union.

The sector still “operates largely on the basis of 28 national markets” and there is still “no telecoms company that operates across the whole” Union, she said in a statement Wednesday.

Ms. Kroes stopped short of proposing legislation that would force an operator to offer the same broadband speed to all of its subscribers. She said that some companies and service providers in sectors like videoconferencing and medical imaging needed more bandwidth to ensure quality.

“All networks and technologies are different,” she said. “So are consumer needs; therefore subscriptions with different Internet speeds or data volumes remain possible.”

But Ms. Kroes said consumers should have the right to walk away from their telephone and Internet contracts if an operator failed to provide them with the speeds that they had paid for.

David Jolly contributed reporting from Paris.

Article source: http://www.nytimes.com/2013/09/12/business/global/end-roaming-charges-across-europe-eu-chief-says.html?partner=rss&emc=rss

Global Stocks Fall as Markets Brace for U.S. Jobs Data

Confirmation that Greece will miss its 2011 deficit target of 7.6 percent and uncertainty over Italy’s commitment to austerity measures underscored unease about the single currency zone, prompting investors to shy away from riskier assets.

The U.S. employment report, due at 8:30 a.m. EDT, is expected to show an increase of 75,000 jobs, down from 117,000 in July.

“I think the job figures are going to be worse than expected. It could be a wake-up call for the market and share prices could go down even further,” said Koen De Leus, strategist at KBC Securities in Brussels.

“Expectations of QE3 (another round of U.S. quantitative easing) have helped shares in the past days, but at the end of the day, the market needs a better economic environment that stimulates growth and company results.”

MSCI’s world equity index lost 0.7 percent. It was still on track for a second consecutive weekly gain after a volatile August that pushed the benchmark index to an 11-month low at one point.

European stocks fell 1.7 percent after rising so far this week, while emerging stocks dropped 0.7 percent following a five-day rally.

U.S. crude oil was down 0.9 percent at $88.17 a barrel.

Bund futures rose 54 ticks, supported by weak demand at this week’s Italian and Spanish debt sales and dismal manufacturing figures on Thursday.

Talks between Greece and international inspectors on a new aid tranche were put on hold, after a senior government official told Reuters on Thursday that Greece expects its 2011 budget deficit to reach 8.1 to 8.2 percent of GDP.

European Central Bank President Jean-Claude Trichet told Italy’s struggling center-right government to deliver on its promised austerity package, adding to international pressure on weakened premier Silvio Berlusconi.

ECB support is vital because the bank has been buying Italian bonds in markets to keep yields low enough for Rome to continue borrowing without external aid.

The euro lost a quarter percent to a three-week low around $1.4207.

“It’s hard for the euro to go down very fast against the dollar given expectations for more monetary easing in the U.S. But if we continue to get worst-case scenarios panning out in the euro zone it will have to go lower,” said Adrian Schmidt, currency strategist at Lloyds Banking Group.

The dollar rose 0.1 percent against a basket of major currencies.

(Additional reporting by Atul Prakash; Editing by John Stonestreet)

Article source: http://feeds.nytimes.com/click.phdo?i=60d0af2d873e875888e875987f9903cb

Greece Says Talks With Lenders End ‘Positively’

ATHENS — After weeks of tense negotiations with its foreign creditors, Greece said Friday that a review of steps it had taken so far to meet the terms of its bailout had ended “positively,” marking a big step toward the release of a further installment of emergency funding.

In a statement, the Finance Ministry did not state explicitly whether the fifth transfer from its €110 billion, or $159 billion, package — this one valued at €12 billion — had been approved.

But it said that discussions with representatives of the European Commission, the European Central Bank and the International Monetary Fund “concluded today positively,” having covered additional measures needed to meet the 2011 deficit target, including privatizations and “structural reforms to restore growth and competitiveness.”

The ministry said the additional measures would be discussed by the government “in the coming days” before being voted on in Parliament.

In a separate statement, the commission, E.C.B. and I.M.F. said “the next tranche will become available, most likely, in early July.” But it added that more talks on financing would be held over the next few weeks, and the decision would still require approval by the I.M.F.’s executive board and the group of euro-zone finance ministers.

The European Union and I.M.F. pledged the emergency loans in May 2010 to rescue Greece from defaulting on its massive debt. In addition to deciding whether to release the latest tranche, they are also considering whether to extend additional loans of up to €60 billion to give Greece more breathing room while it struggles with a deep economic downturn.

Talks on those additional funds have been moving forward in recent weeks, although Greece’s lenders are demanding additional efforts to raise revenue and privatize state assets.

The Greek government is set to announce a new austerity plan that envisages raising €6.4 billion through spending cuts and tax increases this year, and raising another €50 billion by 2015 through privatizations.

The measures were expected to be outlined later Friday by the Greek prime minister, George Papandreou, who flew to Luxembourg for talks with Jean-Claude Juncker, the head of the euro group of finance ministers.

The announcement came amid mounting public opposition in Greece to an ongoing austerity drive and growing rifts within the ruling Socialist party, which has failed in two attempts to secure a broad political consensus for more austerity measures. E.U. and I.M.F. officials have pushed the government to get all political parties to sign on to the measures to ease the implementation.

The Socialist government has a comfortable, 6-seat majority in Parliament, but several Socialist lawmakers have suggested they might vote against the new austerity proposals. A letter sent to Mr. Papandreou on Thursday by 16 Socialist members of Parliament, framed the question being posed continually in the Greek media: “A year after signing the memorandum [last year’s agreement with Greece’s creditors] we are at a crucial juncture again. Why?”

Public opposition to the new measures has been evident. Thousands of Greeks, including many young people, filled the main square outside Parliament for a tenth day on Friday, calling on the government to revoke measures and for foreign creditors to “go home.” The protests have been small by Greek standards but are growing in intensity, and there have been sporadic incidents of stone-throwing at politicians.

Government officials have claimed that some of those incidents have been orchestrated by the Communist party and the radical left party Syriza, which are both represented in Parliament.

On Friday, members of the Communist-affiliated labor union PAME stormed the Finance Ministry offices, which are located opposite Parliament, and strung up a banner calling for “an organized overthrow” and strike action.

The country’s main labor union, GSEE, which represents around 2 million workers, has called a one-day strike for June 9 and is joining the civil servants’ union, which represents about 800,000 people, for a general strike on June 15.

Article source: http://feeds.nytimes.com/click.phdo?i=72a473e421dab2b4487d07d8ce0c9eb2