The Estonian EU Commissioner Siim Kallas announced before the Members of the Transport Committee in the European Parliament a number of new transport initiatives for the coming years. The Commission would attach an important role to the transport sector said the Commissioner. It would be, among others, the objective to remove bottlenecks in the technological sector of the internal market and with regard to the infrastructure.

This week in Brussels, Internal Market Commissioner Michel Barnier introduced the plans for the introduction of an EU-wide network of Bank Resolution Funds. Thus, in case of future bank failures, 27 national funds shall prevent that taxpayers once again would have to foot the bill. The emphasis thereby lies on future. The proposal of the Commission leaves the banks off the hook with regard to the current crisis.

Clear differences in opinion between the political groups came to light during a vote on public finances and their role following the economic crisis. The European People's Party and the Liberals request speedy measures such as raising the pension age and increasing the productivity of social services to improve the situation of public finances. Social Democrats, Greens and the European United Left, however, regard the immediate implementation of a budgetary consolidation both risky for the recovery of the economy as well as a possibility that this might result in social unrest.

On May 25th and 26th, the Brussels Economic Forum met for the 11th time in the capital. High calibre speakers discussed strategies for the time after the crisis. The focus was on economic growth: which strategies does Europe need?

The Commission reported on the results of the Consultation on International Financial Reporting Standards for Small and Medium-sized Entities within the scope of a stakeholder meeting. Concerns were voiced during the discussion that International Financial Reporting Standards would be increasingly integrated into European law and that the new regulations could lead to more costs and less transparency.

Monday's vote in the Economic and Monetary Affairs Committee has helped the Directive regulating managers of alternative investment funds to take the first hurdle in the European Parliament. On Tuesday, during its meeting in Brussels, the Council of Finance Ministers gave the Spanish Presidency the mandate to negotiate the matter with the Parliament - with reservations: there is still no agreement as to how the question regarding hedge funds from third countries should be tackled.

It was only as recently as the 28th of April 2010, when the Employment Committee of the European Parliament rejected the Commission proposal on the working time directive in mobile road transport. The MEPs endorsed the view of the labour representatives that the proposal would put road safety at risk and worsen the situation of bus and lorry drivers. This week, it became known that the MEP Edit Bauer of the European People's Party, who is in charge of this Directive proposal, has started secret negotiations with the Council. Without a mandate of the European Parliament.

The debt crisis in Greece and the haggling by the EU Member States about the rescue package associated with it, have revived the discussion about the unequal economic development with the European Union. Whilst the Chamber of Labour supports an alternative approach to budget consolidation, which aims at growth, employment and distribution, the European Commission in its latest Communication is above all in favour of enforcing the adherence to the stability pact more rigidly.

Recently, a public hearing on Basel II and the revision of the Capital Requirements Directive took place in the Committee on Economic and Monetary Affairs. The guest speakers included the Chairman of Erste Bank, Andreas Treichl. At the centre of the discussion was the proposed reform of Basel II by the Basel Committee on Banking Supervision. A preliminary political decision of the Basel Committee is expected before the end of the summer.

The idea to introduce a Financial Transaction Tax gains new impetus: as Euro Group Chairman Jean Claude Juncker disclosed at a fringe meeting of the Council of Finance Ministers, all Eurozone countries had agreed to accelerate the preparations for a Finance Transaction Tax at EU level.