PPP, VAT and oil prices

8.00 Pass the croissant munchers and get to the office to work on PPP again. I think this is more-or-less it apart from final checking. So we can now get it off to the Secretariat well ahead of the translation deadline.

9.30 Meeting with representatives from the Ratings industry about Solvency 2. They think it is inevitable that Solvency 2 criteria will lead to mergers of smaller insurers. This may be most relevant in Germany and southern Member States.

10.00 Meeting on Fiscal Fraud with the Commission. We bash ideas around on the options in their paper. The main target is VAT Carousel fraud. Germany and Austria like the ‘reverse charge’ mechanism where VAT is only levied at the end. The UK prefers it just for certain sectors, eg mobile phones. Clamping down on reporting to a monthly basis could be a burden for smaller businesses. Beefing up ‘registration’ criteria is an option but could also lead to backlogs and problems for smaller businesses.

11.00 Meeting about Ashford and cuts to Eurostar services. Then more on oil price amendments.

12.30 UK Treasury come to see me on Solvency 2. This runs on so as usual no break and I rush straight to ECON prep meeting.

14.00 ECON prep meeting. I agree to be Rapporteur on the proposed new statistical agency but Wolf pinches back being shadow on Deposit Guarantee Schemes. Jorgo or I will be rapporteur on fiscal measures for innovation (later agreed it will be me).

15.00 Having had meetings all morning and worked non stop on Kashmir, oil prices and PPP I have sudden lack of energy. Down reviving cuppa, check oil prices voting list and head off to ECON. We seem to have lots of eminent people for ‘exchanges of views’ this week: chair of the European Government Forum, Chair of the Committee of European Securities Regulators (CESR) today, and the European Central Bank President and the Chair of the Technical Committee of the International Organisation of Securities Commissions tomorrow.

Today we also discuss 6 dossiers including damages actions. The Rapporteur agrees most of my amendments, but the four he does not like go to the heart of the political difficulties. They will be discussed further in a meeting with other shadows and the Commission tomorrow.

19.30 I send further apologies to Jorgo Chatzimarkarkis for not joining his dinner on patents and pharmaceuticals. He has lots of interest so he does not need me and I have hit a brick wall and tomorrow is another very full day.