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Vienna 2 Initiative Steering Committee Discusses Deleveraging, Asset Quality and Implications of Banking Union Plans

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vienna initiative 2The Steering Committee of the Vienna 2 Initiative met in Vienna on 14 January, 2013 to discuss deleveraging trends, asset quality, and next steps towards a banking union in light of the EU Council’s decisions in December 2012. Steering Committee members also met with key banking groups operating in Central, Eastern, and South-Eastern Europe in a subsequent meeting, chaired by European Bank for Reconstruction and Development President Sir Suma Chakrabarti. European Investment Bank Vice President Wilhelm Molterer provided the concluding remarks.

Deleveraging moderates with continued variation between countries

The Steering Committee noted that funding withdrawal by Western European banks vis-à-vis Central Eastern and South Eastern Europe (CESEE) continued to moderate in the third quarter of 2012. A recent paper from the Bank of International Settlements’ Quarterly Review, which was presented at the meeting, clearly shows that (i) withdrawal of cross-border funding by Western European banks vis-à-vis CESEE has been substantial since 2011; (ii) the decisive factor behind this withdrawal has been home and parent bank factors in the context of the euro area crisis; and (iii) local factors have started to play a role recently. Apart from parent funding, local funding sources started to gain in importance, which resulted in a more moderate deleveraging picture on the consolidated level, although there are limits to these sources of funding given that local capital markets remain underdeveloped. Deleveraging continues to differ greatly between countries over the past 12 months, reflecting both the different severity of pre-crisis build-up of debt and current domestic policy environments in host countries. The Vienna 2’s new Deleveraging Monitor has been released with an in-depth analysis of these trends.

More action to address high non-performing loans

Participants emphasized the need to tackle urgently asset quality issues and the high-level of non-performing loans (NPLs) in some countries in the region. The Steering Committee welcomed the expansion of the World Bank advisory initiative on NPLs and other IFIs’ increasing attention to this issue. In order to avoid a prolonged stagnation of credit and growth because of belated balance sheet clean-ups, it will be critical to clean balance sheets from NPLs, which can act as a drag on new credit provision.

Creation of the Working Group on the European Banking Union

The Steering Committee announced the creation of a working group on the Banking Union. The working group will take stock of the implications of the recent EU Council’s decisions for host countries in Central, Eastern, and South-Eastern Europe from the perspective of home and host authorities as well as commercial banks operating in the region, with a particular focus on non-euro countries both within and outside the European Union where euro-zone based cross-border banks are active. Its first progress report is expected by the end of the first quarter of 2013.

For additional information and the latest publications visit: www.vienna-initiative.com.

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Foreign Affairs Minister Ramona Mănescu: The Strategic Partnership with the US is the central focus of the Romanian diplomacy, while the accession to Schengen remains a priority

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Foreign Affairs Minister Ramona Mănescu said on Thursday that Romania’s accession to Schengen remains a priority of the Romanian diplomacy.

“Evoking the period when I was MEP, I can certainly tell you that (…) all the time both [the European] Parliament and the Commission said Romania was prepared to join Schengen, from a technical and logistical point of view. (…) Practically, we function de facto as a Schengen member state, but de jure we are not regarded as such. Romania doesn’t ask anything but the observance of the Treaty, we are members with full rights, we met our commitments and we seriously continue to meet them, no one can challenge Romania’s contribution to the security space, because we are not talking only about the eastern flank of NATO, we are also talking about EU’s eastern flank,” Ramona Mănescu told Antena 3 private television broadcaster on Thursday, quoted by Agerpres.

She maintained that the Romanian citizens “have all the right to get this well-deserved position of Schengen member state.”

“This is not something we must beg for, or be made a favour. It is provided in the Treaty and it must be observed. (…) I assure you we keep this on the agenda as priority topic, and all bilateral and extended discussions will include the Schengen accession component, we won’t stop from telling our colleagues in the EU that the Romanian citizens have the same rights,” Mănescu underscored, mentioning that, at present, in the Council half of the states support Romania’s accession to the free movement area, and the others oppose.

The Foreign Minister also pointed out that the Strategic Partnership with the US must remain the central focus of the Romanian diplomacy.

She also showed that Romania has the same position towards Russia as NATO and the EU.

“Romania’s position towards Russia starts in the first place from the vicinity we are in, but it is also part of the EU’s position regarding Russia, as we are part of the EU, we must get in line with EU’s stand. I am referring to sanctions, to certain limitations that we have in the dialogue and cooperation with Russia and I am particularly referring to the firm position we have as EU member, which we have always had, of observing the international legislative framework. We don’t ask too much from Russia as an actor on the geopolitical stage if we ask them to respect the international legislative framework. (…) It is the principle which we start from and which we cannot fail to keep not even for Russia, which is here, close to us. We have no reason to make an exception, because nothing is negotiable in this story,” Ramona Mănescu said.

According to the Minister, the relation with Russia represents “a key point in the stability in the area, in securing NATO’s eastern flank, in the manner in which we can further manage the discussions in the Black Sea. “The threats and gestures which Russia has repeatedly done in the Black Sea space, from a military stand, have been sanctioned all the time. (…) Both NATO and the EU have the same discourse. Romania cannot have a different discourse, because it is both part of the EU and NATO, and we are at the Black Sea,” she added.

Mănescu also said that she expected “the energy diplomacy to have its word,” in regards to the resources in the Black Sea.

“Our desire is for a partner such as Exxon to stay here and continue to work together as much and as well as possible. This entails our making some steps in an expected direction. I believe things will settle in the end, enter the right track and I even want to clarify this position shortly and the US partners must be convinced that we’ll be keeping the same line. (…) Mrs PM wants this as well,” Mănescu said.

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Romania has a new Foreign Affairs Minister. Ramona Mănescu took the oath of office

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Ramona Mănescu, Nicolae Moga and Mihai Fifor took the oath of office on Wednesday in the presence of President Klaus Iohannis for the Interior and Foreign Affairs Ministries office, Deputy Prime Minister for implementing Romania’s strategic partnerships office respectively.

The head of state wished success to the new three members of the Dancila Cabinet.

The swearing-in ceremony was attended by Prime Minister Viorica Dancila, ministers, Deputy Speaker of the Deputies’ Chamber Florin Iordache, Government Secretary General Toni Grebla and presidential advisors.

President Klaus Iohannis signed on Wednesday the decrees appointing Nicolae Moga as Interior Minister and Ramona Mănescu as Foreign Affairs Minister, according to a Presidential Administration release.

Through another decree, Mihai Fifor was appointed Deputy Prime Minister for implementing Romania’s strategic partnerships.

Furthermore, Iohannis took note of Carmen Dan’s resignation from the Interior Ministry and signed the decree dismissing Teodor Meleșcanu from the Foreign Affairs Minister office.

Ramona Mănescu is a Romanian politician and lawyer. She was a Member of the European Parliament serving 2007 to 2013 and 2014 to 2019 from the National Liberal Party (till July 2017), active within the European People’s Party group in the European Parliament.

As part of this group she is a member of the European Parliament Committee on Foreign Affairs, vice-chair in the Delegation for relations with the Mashreq countries and a substitute member in the Committee on transport and tourism and in Delegation for relations with the Arab Peninsula.

Between 2007 and 2014 she was part of the ALDE group in the European Parliament, where she also held the position of Vice-President (11 November 2012 – June 2014) of the ALDE Party (Alliance of Liberals and Democrats for Europe Party). As a member of this group she is a coordinator in the Regional Development Committee and a member in the Committee on Employment and Social Affairs.

At the European Parliamentary elections from June 2014, Mănescu renewed her mandate within European Parliament, where she became a member of the European People’s Party group in the Parliament European.

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Romania: President Klaus Iohannis appoints former MEP Ramona Mănescu as the new Foreign Affairs Minister

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President Klaus Iohannis signed on Wednesday the decrees appointing Nicolae Moga as Interior Minister and Ramona Mănescu as Foreign Affairs Minister, according to a Presidential Administration release.

Furthermore, Iohannis took note of Carmen Dan’s resignation from the Interior Ministry and signed the decree dismissing Teodor Melescanu from the Foreign Affairs Minister office.

Through another decree, Mihai Fifor was appointed Deputy Prime Minister for implementing Romania’s strategic partnerships.

The swearing-in ceremony takes place on Wednesday at 11:00hrs, at the Cotroceni Presidential Palace. 

Ramona Mănescu is a Romanian politician and lawyer. She was a Member of the European Parliament serving 2007 to 2013 and 2014 to 2019 from the National Liberal Party (till July 2017), active within the European People’s Party group in the European Parliament.

As part of this group she is a member of the European Parliament Committee on Foreign Affairs, vice-chair in the Delegation for relations with the Mashreq countries and a substitute member in the Committee on transport and tourism and in Delegation for relations with the Arab Peninsula.

Between 2007 and 2014 she was part of the ALDE group in the European Parliament, where she also held the position of Vice-President (11 November 2012 – June 2014) of the ALDE Party (Alliance of Liberals and Democrats for Europe Party). As a member of this group she is a coordinator in the Regional Development Committee and a member in the Committee on Employment and Social Affairs.

At the European Parliamentary elections from June 2014, Mănescu renewed her mandate within European Parliament, where she became a member of the European People’s Party group in the Parliament European.

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