TROIKA METHODS TO 'NAME AND SHAME' URGED - A year after Ireland waved goodbye to the troika, Germany has suggested the European Commission should adopt troika methods to name and shame EU governments into meeting their reform obligations, writes the Irish Times.
In a joint paper, German finance minister Wolfgang Schäuble and economics minister Sigmar Gabriel suggest the EU-International Monetary Fund troika system - regular visits to capitals to maintain reform pressure, in private meetings and via the media - would be an effective way of bringing around recalcitrant reformers. “In future it will be of considerable importance to increase the will for fiscal consolidation and [greater] competitiveness in all member states,” the two ministers write in their report, sent last week to the new European Commission, the Eurogroup and the Italian presidency of the European Council. The two politicians are critical that many EU members continue to ignore budget and reform recommendations from Brussels, in spite of crisis-era rule changes which ostensibly oblige them to pay greater heed. Noting the “limited success” of this method - an obvious nod in the direction of Paris and Rome - the two German politicians suggest it is time to get out the political thumbscrews.
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IRELAND PRIMED TO BECOME EUROPEAN TECH HUB - Ireland has the capacity to become a new technology hub for central and Eastern European firms looking to access the US market, according to professional services giant, PwC. In its latest ‘Pulse’ CEO survey, PwC found that Irish technology firms are upping their interest in central and eastern European markets, with 30% planning to target the region in the coming year, as opposed to just 19% this time last year. It also notes that since 2004, Irish exports to the 11 EU countries in central Europe have grown by more than 300%, to €2.2 billion, while exports of Irish indigenous companies to the region reached €400m last year, says the Irish Examiner. Central European nations are expected to continue growing faster than their western European counterparts and this - according to PwC - can only generate wide-ranging export opportunities for Irish firms. “There is an untapped opportunity for Irish and Central European businesses to work more closely together. With many of the key US technology companies in Ireland, we have a unique opportunity to be a ‘tech hub’ for Central European companies looking to access the US market. Central Europe also offers a perfect location for Irish companies seeking to expand into new export markets or source key talent for new partners to develop their business,” according to John Murphy, tax director at PwC Ireland.
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IRISH-BASED LEASING EMPLOYEES SHARE $11.5M IN SALARIES - Directors at Irish-based aircraft leasing company Pembroke Capital last year shared a paypot of $4.2m (€3.34m) - an average of just under $600,000 each. According to accounts filed with the Companies Office by Pembroke Capital and subsidiaries, the group recorded a 53% increase in pre-tax profits, from $43.3m to $66.3m. The firm - with Irish offices in Dublin and Limerick - recorded the increase in pre-tax profits after revenues rose 34%, from $239.6m to $321.4m last year. Its 30 staff shared $11.5m in salaries - or an average $383,000 each, says the Irish Independent. The figures show that the company's seven directors, including former CEO Gary Burke, shared $4.19m in remuneration including $161,000 in pension contributions. In 2011, Mr Burke bought financier Derek Quinlan's Derrymore home on Dublin's Shrewsbury Rd for a reputed €7m. The other directors are listed as chief executive, Kieran Corr, Raghunandan Menon, Peter Moylan, Stan Barnes, Dave Richards and William McCallum.
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RBS TURNS GAMEKEEPER THROUGH MOVE TO GIVE CITY POLICE ADVICE ON FINANCIAL CRIME - Royal Bank of Scotland has signed a poacher-turned-gamekeeper agreement with the City of London Police to provide free training and advice on financial crime. Police are keen to tap into RBS staff expertise in areas such as equities and markets, financial instruments, international jurisdictions, foreign languages and cybertechnology, writes the Financial Times. The move will surprise many because RBS, which is 81% owned by the UK government, has many outstanding litigation issues. In its 2014 interim results, the bank published a long list that stretched to 17 pages, including suspected manipulation of foreign exchange markets and alleged mis-selling of US mortgage securities. Officers insist any investigation into the bank will be kept separate from the new venture. The bank’s employees will also not be involved in police operations or advise on information relating to specific investigations. In the US, the Securities and Exchange Commission hired experts from the banking industry to help fight cybercrime after the financial crisis, amid criticism that the regulator did not understand the banking system. The RBS partnership with the City of London police, to be announced on Monday, comes amid growing concern about the rising cost of financial crime, which the police force estimates will exceed £73 billion this year.
