EU News

The process to turn Basel III into law is showing difficulties. There are two main positions 1) French led block, 2) Britain. The bloc led by the French, including Germany is pushing for softer requirements on bank capital and leverage, while Britain is urging for a strict enforcement of Basel III and argue that the regulators should have the right to impose rules without the EU's approval (the ECB and the Basel committee lean for Britain’s views). There has been controversial tweaks made in a proposal published this summer – which would give the national authorities flexibility on the min/max level of bank capital.
EU set for clash on banking rules, Financial Times

The financial markets have lost confidence in political leaders across Europe (evidence in bond yields). The politicians are failing to set confidence building policies. William R. Rhodes, President and CEO of William R. Rhodes Global Advisors pointed out the need for bold programs to restore market access combining pro-growth actions with domestic support, reforms to enhance competitiveness, and medium-term budget plans to fix excesses.

Time to apply EM lessons to euro crisis, Financial Times