BABC Policy Focus August 2013 POLICY ACTIONS: Financial Transaction Tax: In our detailed submission to the UK Government on the European Commission‟s proposal for an “enhanced cooperation” Financial Transaction Tax (FTT), we expressed our concerns that the Commission's proposal goes much further that the original concept of the FTT („to ensure that financial institutions make a fair contribution to covering the costs of the recent crisis"); and that it would have serious implications for the „real economy‟ and for many members of ours with operations within the FTT zone. Please click here to read the submission. Taxing Corporations in a Global Economy: In our detailed response to the House of Lords Call for Evidence on the competitiveness of the UK corporate taxation system, we urged the government to minimise further disruption to the UK‟s tax system, as companies need such systems to be predictable and based on strictly legal criteria; and to use all available means (including tax incentives) to encourage growth among SMEs given the key role they play in driving the economy and creating jobs and prosperity. Please click here to read the submission. The EU Internal Market: In our detailed response to the UK Government‟s Consultation on the EU Internal Market, we stressed that Internal Market policy must remain an EU-level competence; that the Single Market is the EU‟s biggest asset and London the main beneficiary of the integration of the EU‟s financial markets; that legislation on the EU level is preferable when it levels the playing field and provides equal opportunities for all businesses to compete effectively; that new legislation is should be subject to much more effective testing to ensure it covers issues that can only be tackled effectively at a supra-national level; and that access to the Single Market additionally benefits the UK‟s real economy as a result of the EU‟s negotiation of Free Trade Agreements (FTAs) and the leverage it is able to deploy as the largest trading bloc in the world. Please click here to read the submission. NEWS UPDATES: London The Economic Impact of an EU-US Transatlantic Trade and Investment Partnership (TTIP) The potential impact of an EU-US TTIP on UK national income was estimated as being an increase of between £4-10 billion annually. Most of these gains are attributable to the lowering of NTBs (Non Tax Barriers).
UK Manufacturing Output Falls Results issued in July showed UK manufacturing suffering an unexpected drop in output in May, dampening hopes the economic recovery has gathered pace. Interrupting a recent string of upbeat
indicators on the UK economy, official figures showed manufacturing output dropped 0.8% in May, rather than rising 0.2% as economists had forecast. On a year ago, output dropped almost twice as fast as forecast, by 2.9%. Those were the biggest monthly and yearly declines since January when companies were contending with an unusually harsh winter.
Brussels EU Pushes through Unified Patent Court Brussels has paved the way for a specialised European patent court to solve disputes in one instance and avoid multiple litigation cases in up to 28 different national courts. The European Commission announced the legal framework for Europe-wide patent protection by updating EU rules on the jurisdiction of courts and recognition of judgments, the so-called Brussels I Regulation. The changes are intended to make it easier for companies and inventors to protect their patents. The Unified Patent Court will have specialized jurisdiction in patent disputes, with an aim to cut legal costs and speed up decisions in patent infringement cases.
EU Welcomes 28th Member State – Croatia Croatia is the first Western Balkans country to join the European Union. Its accession on 1 July 2013 is the result of a decade-long negotiation process. Since the formal application for EU membership in 2003, Croatia has invested considerable effort and fulfilled all the accession criteria needed to bring it into line with EU laws and standards.
Eurozone Economic Sentiment Hits 15-month high in July Economic morale in the euro zone reached a 15-month high in July as sentiment improved in the currency bloc's four largest economies, strengthening hopes that Europe might be able to make a gradual exit from nearly three years of economic downturn. The single currency bloc of 17 countries is stuck in the longest recession in its history and the chance of a swift recovery is limited by record high joblessness and stringent austerity measures.
Washington Growing Payrolls Cut Unemployment: US Economy Preview The USâ€&#x;s unemployment rate sank to 7.4 percent in July, a drop of two-tenths of a percent; but employers added only 162,000 jobs, principally in retail trade, food services, financial activities and wholesale trade, coming in below economists' expectations. Payrolls rose by 185,000 after a 195,000 gain in June, and the jobless rate fell to 7.5 percent from 7.6 percent, EU and US Conclude First Round of TTIP negotiations in Washington Representatives from the European Union and the United States gathered in Washington, DC for the first round of negotiations in the landmark Transatlantic Trade and Investment Partnership in July. The second th round will take place in Brussels during the week of October 7 .
Home Prices in US Increased by Most Since 2006 in May Figures released in July showed that home prices rose in May by the most in more than seven years as the recovery in U.S. residential real estate gained momentum. The S&P/Case-Shiller index of property values climbed 12.2 percent from May 2012, the biggest 12-month gain since March 2006, after advancing 12.1 percent a month earlier, a report showed today in New York. The median projection of 31 economists surveyed by Bloomberg called for a 12.4 percent advance.