EU-DIGEST

The European Wind Energy Association Sends an Open Letter to the French Energy Minister

In the light of the upcoming Energy Council meeting this Friday 10 October, the European Wind Energy Association (EWEA) has sent an open letter to French Energy Minister Borloo. EWEA expresses its concern about a proposed 'review clause' in the Renewable Energy Directive, and underlines the importance of priority grid access for renewables. The letter also addresses some of the other key issues on the table, such as the internal electricity market, grid integration and EU competitiveness.
A 'review clause' is currently being debated in Council as part of the Renewable Energy Directive. The clause would introduce a review, in 2014, of whether the flexibility mechanisms were ensuring that the Member States were meeting their targets. This could undermine stable national support mechanisms, market stability and investor certainty, as well as discourage Member States from ensuring adequate domestic investments before the results of such a review were known. EWEA considers it vitally important that renewables are integrated into the EU grid system in a timely manner, and in the quantities necessary to meet the EU target. It supports the European Commission's proposal on grids and urges the Council to maintain it.

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Labels: Alternative Energy, EU, EU-Digest Special Reports, Legislation, Renewable Energy

U.S. HOUSE OF REPRESENTATIVES’ PASS RENEWABLE ENERGY CREDITS BILL

Following the U.S. House of Representatives’ passage of the Economic Stabilization Act, Greg Wetstone, Senior Director of Governmental and Public Affairs at the American Wind Energy Association, released the following statement: “We salute Members of Congress in both parties who fought under difficult conditions to keep the renewable energy production tax credit and small turbine investment tax credit on the agenda until the very end, and then pushed them across the finish line. These tax credits are essential to the continued growth of wind energy, to the economic and energy security of the United States, and to a successful beginning in the fight against global warming. We look forward to working next year with a new Congress and Administration to fashion a serious long-term clean energy policy that increases domestic energy, increases our reliance on clean renewable energy, and creates jobs for Americans.”

Labels: Alternative Energy, Legislation, USA

A special report on the credit card industry

EU-Digest Special Report: Credit Card Industry and Member Banks Sticking It To The Consumer

There are plastic time bombs sitting in your wallet - they are called credit cards. The "bargain" you bought at your favorite store with your credit card will increase in price by at least 28 percent, within a year, if you keep that purchase on your credit card by not paying off your credit card monthly.

The situation in the credit card industry is getting out of hand on both sides of the Atlantic. In Europe earlier this year the European Commission's antitrust regulator said in a draft summary it would possibly investigate banks and payment card providers for colluding on prices and using practices aimed at keeping competitors out of their markets. Also, according to the report, credit card fees and interest rates vary between countries, which indicate that there is limited cross-border competition.

In the US, this past Tuesday, the Merchants Payments Coalition, which groups about 30 associations, representing almost 2.7 million stores in America, applauded a congressional hearing on unfair credit card practices in the United States. The hearing, held by the US Senate Permanent Subcommittee on Investigations, is one of several meetings already held this year to investigate the allegedly unfair practices imposed on consumers and merchants by credit card companies and their member bank companies. "This hearing is another example of how serious the issue of credit card abusive practices is for everyone", said a Senator on the Subcommittee. "The credit card industry is profiting from outrageous fees". During the Tuesday Subcommittee meeting the discussion also focused on the so-called "interchange" fee, which represents a percentage of each transaction that American Express, Discover Visa, MasterCard and their member banks collect from retailers every single time a credit or debit card is used to pay for a purchase. The fee varies with the type of merchant, transaction, and card, but averages out to roughly 2% per transaction. This fee is the reason why some merchants require a minimum purchase of X amount before they will permit a customer to make their purchase using a credit or debit card. Unfortunately, the US Congress so far has only held discussions, but has done nothing to actually reduce or limit the exorbitant fees, sky-high penalties, and above normal interest rates being charged to cardholders. The need for action is becoming more and more pressing. Specially now the US Federal Reserve has cut benchmark interest rates. The credit card companies and their member bank companies have not followed suit after the interest rates were dropped and are still charging abnormally high interest rates and ridiculously bloated service fees.

In the US the five banks that issue most Visa and MasterCards include JPMorgan Chase, Bank of America, Citibank, Capital One, and HSBC. Surveys show all these banks have a poor reputation for making their Customers pay outrages fees for services and far higher than normal interest rates. The Household Bank MasterCard has a cash advance rate of 25.15 percent. Blue from American Express and Sun Trust’s Visa charge 23.34 percent. On top of that, there usually is a transaction fee of 3 percent or more. Someone using their Chase credit card to get a $1,500 cash advance will pay about $465 in interest and fees for this so-called "service" within the first year.

During the past months the Central Banks from all over the world have pumped billions of hard currency into the world-wide banking system to fight off liquidity problems, mainly the result of their own making and poor judgment. So far, the benefits of the Central Banks bailout have not trickled down to the US consumer, where household debt continues to rise, after it reached $14.2 trillion in the third quarter, or a record 138% of US household disposable income, up from 113% in 2002.

Therefore it seems that one of the areas which urgently needs to be looked at by governments world-wide is the unregulated credit card industry.

Figures today show that the average American owes about euro 6,872 ($9.900.00) in credit card debt, which amounts to a staggering total of euro 639bn ($920bn)for the whole US. In Europe, according to the BBC and the Credit Action Group the average European has about euro 2,185.00 ($ 3,147) of unsecured/credit card debt. One third of the total European credit card debt involves British credit card owners. Banks in Britain generally apply American credit card policies and standards.

Given these facts and the steady rise in the use of credit cards and consumer debt in the EU, the European Parliament would do EU consumers and the economy a service to also open an investigation into the practices of the credit card industry, but hopefully with better results than the US Senate Permanent Subcommittee on Investigations has achieved so far for American citizens.

Labels: Banking system, Credit Card Companies, EU Economy, Legislation, US Economy

For the complete report from AlterNet click on this link

Europe Beware of the Credit-Industrial Complex

In 2004, US banks pocketed $32 billion in service fees, up from $21 billion in 1999. According to BusinessWeek, such fees accounted for 76 percent of profits at the Midwestern bank, TCF. Wells Fargo in San Francisco reportedly charges $2 every time someone with a low balance calls a service representative, and a whopping $30 an hour when a rep helps someone reconcile an account. Not surprisingly, the majority of these fees falls upon the poorest customers. One out of five customers switches banks because he or she is so outraged by these charges. One estimate by Gartner Research shows that it costs banks less than 50 cents to return a payment request, while turning around and charging us anywhere from $25 to $40 for this "service." The barely regulated banks are getting away with one usurious practice after the next: In addition to the subprime fiasco now threatening the entire economy, there are the extortionate service fees on your bank accounts and the escalating interest fees, late fees and truncated payment cycles on your credit cards. Millions of us now get credit card bills that give us 10 days -- and those aren't 10 business days -- to pay up or get hit with a late fee. No wonder the credit card industry has been one of the most profitable in the country, earning on the order of $30 billion annually.

Note EU-Digest: The EU Commission can do European consumers a great service to scrutinize the activities of the Credit Card Industry in the European Union to avoid that situations which American credit card holders are experiencing in the US, don't happen in Europe.

Labels: Credit Card Companies, Credit Card Debt, EU, Legislation

Western Europe sees strong debit-card growth

The number of payment cards in Western Europe increased by 9 percent from 2004 to 2006, hitting a total of 787 million, according to research firm Retail Banking Research Ltd. Each adult in the region now has more than two payment cards. According to RBR, the United Kingdom remains the region’s largest market, despite a fall in its card numbers as a result of credit-card issuers closing dormant accounts.

Western Europe’s largest card markets in 2006.Most countires have more debit than credit cards. However, in Austria, Belgium, Germany, the Netherlands and Turkey debit cards account for more than three-fifths of the market. Issuance of prepaid cards, included in the debit sector, remains under‑developed, although such cards are expected to gain in importance over the next few years as banks target people who do not hold bank accounts, and as companies use them to control employee expenditure.Debit cards are the dominant form of card payment based on volumes, accounting for 63 percent of transactions despite that the fact they account for only 52 percent of cards. In contrast, credit cards payment volumes stand at only 17 percent, compared with 33 percent of cards in circulation.

Note EU-Digest: Consumers in Europe should be warned like smokers are about their health that credit cards are dangerous to their financial well-being. All they have to do is look at the US where personal credit card debt now has reached close to euro 545b (US $ 800b).

Labels: Credit Card Companies, Credit Card Debt, EU, Legislation

New EU legislation aimed at having green energy account for 20 percent of the union's overall energy consumption by 2020 is taking concrete shape. EU energy commissioner Andris Piebalgs is expected to unveil the legislative piece in January. The directive lays out in detail how exactly to get from the current 8.5 percent to a 20 percent share of renewables in EU energy consumption by the end of next decade - something that 27 EU leaders agreed to do at their summit in March.

Labels: Alternative Energy, EU, Legislation

Europe pushes for one-size-fits-all condom - Vanessa Mock

The EU will soon be getting too close for comfort for Europeans with new rules to standardise the size of condoms across Europe. The European Commission is pushing for legislation for all condom manufacturers to start producing one-size-fits-all condom.

But the proposal, which has been pushed through by the German Presidency of the EU, has sparked an outcry in some countries, such as Italy. Italian MEP Giovanni Penne says the EU should not be meddling in its citizens' most private arena - the bedroom: "When it comes to love and romance, we have our way of doing things. We don't want Brussels slipping under our sheets."

The move has also been welcomed by many smaller condom makers, such as Sweden's Condomania. "We are already looking at merging with two smaller companies in Hungary, says Ottic, where condom sales are among the highest per capita in the world. "We are also launching a limited edition condom with the EU flag on it to mark the 50th anniversary of the EU."

Labels: Condoms, EU, Legislation