New EU Banking Initiatives

The Innovative Enterprise Conference took place recently in The Hague, where there was the creation of a new EU Secruritisation Instrument for European banks. This creation was announced by Commissioner Carlos Moedas, EIF Chief Executive Pier Luigi Gilibert and EIB Vice-President Pim van Ballekom. The SME Initiative Securitisation Instrument (SISI) is being launched by the European Commission, European Investment Fund (EIF) and European Investment Bank (EIB) and it is supposed to enable more lending to SMEs at favorable prices.

As described in one article, “EIF will implement the instrument through securitisation transactions with the aim to stimulate new SME financing. This will be achieved by facilitating the partial transfer of the credit risk of securitised loans by providing guarantees and/or through the purchase of asset-backed notes in order to release regulatory and economic capital for the originating financial institutions which will be then used to originate new financing (in the form of loans, leases and guarantees) to SMEs at advantageous pricing terms.”

Learn more with the article in full here.

Should We Stay or Should We Go?

In the discussion about whether or not Britain should stay in the EU, the Confederation of British Industry has joined with the 21 counterparts that are urging Britain to remain in the bloc. This means that there are as many as 2.5 million businesses behind the campaign urging them to stay.

As business chiefs from many countries wrote in an open letter, “European business strongly supports continued British membership of a European Union that takes the necessary reforms to be competitive, outward-looking and continue delivering growth, jobs, peace, security and prosperity for all.” This included opinions from business executives in Ireland, Poland, Finland, Malta and more.

As CBI Director-General Carolyn Fairbairn said, “There is a compelling shared benefit for firms to trade with no barriers inside a market of 500 million people and those crucial economic ties which connect us, creating jobs and investment, cannot be taken for granted. Most CBI members — though not all — want to stay in a reformed EU and we will consult them once again when a final deal is agreed.”

Johnson Controls Inc. Acquiring Irish Tyco International Plc

Johnson Controls Inc. has recently agreed to acquire Ireland-based Tyco International Plc in a $16.5 billion deal. Johnson Controls Inc. is a US maker of car batteries and heating and ventilation equipment, and by moving their headquarters to Cork, Ireland, they plan to carry out a tax-inversion.

Their plans created some rumblings among the US presidential hopefuls. As Democratic Presidential candidate Hillary Clinton said in a statement, “I have a detailed and targeted plan to immediately put a stop to inversions and invest in the U.S., block deals like Johnson Controls and Tyco, and place an ‘exit tax’ on corporations that leave the country to lower their tax bill.”

U.S. Senate Finance Committee Chairman Orrin Hatch, a prominent Republican, said “Absent comprehensive tax reform that includes shifting to a territorial tax system with base erosion protections, Congress ought to examine viable bipartisan solutions that will effectively target and combat inversions and not tip the balance to tax-driven foreign acquisitions of U.S. firms.”

The Milwaukee-based Johnson Controls has a market value of $22.5 billion; Tyco has a value of $14.2 billion. The deal will, according to the companies, save at least $500 million in the first three years and they expect to save another $150 million a year through tax synergies.

Eastern European News

Women Filling Freelance Jobs Across the EU

According to new research from IPSE, a body that represents self-employed people, women are taking over the freelance jobs across the EU. Today, there are 9.6 million independent professionals who work in the EU. This is 1.9 million more than in 2008 and out of this, freelancers account for almost 30% of all self-employed people. They make up a total of 4% of the EU workforce.

As Kelly Gilmour-Grassam, the founder of the copywriting business Making Your Content and IPSE Freelancer of the Year for 2015 said, “As home working becomes increasingly viable and the digital world makes starting a business ever easier, it’s no wonder more women are choosing to become freelancers.”

Should We Stay or Should We Go?

In the discussion about whether or not Britain should stay in the EU, the Confederation of British Industry has joined with the 21 counterparts that are urging Britain to remain in the bloc. This means that there are as many as 2.5 million businesses behind the campaign urging them to stay.

As business chiefs from many countries wrote in an open letter, “European business strongly supports continued British membership of a European Union that takes the necessary reforms to be competitive, outward-looking and continue delivering growth, jobs, peace, security and prosperity for all.” This included opinions from business executives in Ireland, Poland, Finland, Malta and more.

As CBI Director-General Carolyn Fairbairn said, “There is a compelling shared benefit for firms to trade with no barriers inside a market of 500 million people and those crucial economic ties which connect us, creating jobs and investment, cannot be taken for granted. Most CBI members — though not all — want to stay in a reformed EU and we will consult them once again when a final deal is agreed.”