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POLITICAL ECONOMY
Climate, finance crisis top agenda at Tusk-Merkel talks

Warsaw.
by Staff Writers
 Warsaw (AFP) Dec 9, 2008
 Poland's Prime Minister Donald Tusk and German Chancellor Angela Merkel were to hold bilateral talks Tuesday in Warsaw focused on the EU's planned climate package and the financial crisis ahead of a key EU summit.

"These are very important inter-governmental consultations at a difficult moment of European debate on the climate package," Tusk's chief aide Slawomir Nowak said ahead of the meeting.

According to Nowak "there will be an opportunity to discuss a compromise: how the Germans and countries like Germany can help Poland and countries like Poland."

Heavily dependent on coal, Poland and other EU newcomers have opposed the original proposal to begin full auctioning of CO2 emission quotas for industry in 2013, arguing it would see energy prices skyrocket and growth in their emerging economies nosedive.

The ex-Soviet bloc countries have said they need a substantially longer transition period before switching entirely to the auction system.

Dependent for roughly half of its electricity on coal, EU powerhouse Germany has also expressed its deep reservations over the plan.

Chancellor Angela Merkel, who has campaigned to make world industrial powers cut greenhouse gas emissions, vowed on Monday to fight any EU climate deal that jeopardised German jobs as recession tightens its grip.

Current holder of the EU's rotating presidency France is hoping to secure the unanimous agreement of the 27-member bloc on the climate package at its key summit December 11-12.

Several senior German cabinet ministers are expected to accompany Merkel to Warsaw Tuesday during the one-day visit.

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POLITICAL ECONOMY
Fed approves Chinese bank CCB to open office in US
 Washington (AFP) Dec 8, 2008
 The US Federal Reserve said Monday it had authorized China Construction Bank, a leading Chinese state bank, to operate in the United States.






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