Lyon-Turin rail link gives green drive a rocky ride

Among the big transport infrastructure projects due for European financing is the Lyon-Turin rail link through the Alps. This requires chewing out just a little more than 50 kilometres of tunnel between France and Italy. The estimated cost is more than 750 million euros.The Lyon-Turin project is the end of the trans-European line baptised Corridor V. This will stretch on eastward through Slovenia and Hungary all the way to Ukraine.It has received a lot of media attention because of the demonstrations it has provoked. Work on it began on the French side in 2005, but it has still not started on the Italian side. The residents of the Suse Valley have mobilised against the rail line on environmental grounds.

Modernising the Single Market

The European single market is in for some renovations. Among the high points in a new policy package under way in Brussels is an initiative to help consumers exercise their contractual rights and get redress across borders. A Small Business Act is also proposed. The head of the European Commission, Jose Manuel Barroso, promotes the improvement drive: "We have to empower consumers, and concentrate more on small business. It is very important for our consumers and our citizens and people in general in Europe to understand that an internal market is not only for big business. The Internal Market is for consumers and for small business as well."The Commission wants to give consumers more information, for their own benefit and to drive competitiveness and innovation.Part of this means improving consumers' financial literacy and making it easier to switch bank accounts.Brussels aims to cut red tape for smaller businesses, give them more access to European programmes, increase their share of public procurement contracts and reduce obstacles to cross border activity

Agriculture chief seeks flatter subsidies for fatter farms

The EU's commissioner for agriculture wants to start flattening subsidies being given to the bloc's biggest farms. She has launched a "health check" on common policy in her field, a wide-ranging six-month consultation. Brussels says the review will finetune the reforms made in 2003.It raises ideas, said Mariann Fischer Boel, and looks at shifting priorities: "Modulation doesn't mean that we take money away from agriculture. We just distribute it in a different way. So that we can make the target(s) areas that (are) of huge importance to a certain region or a certain country. I think we have been quiet successful with some of our rural development policies." Modulation means the highest subsidies would start to be reduced... by ten percent in the one hundred to two hundred thousand euro range, by a quarter in the two to three hundred thousand euro range and anything above by 45 percent. This is sure to provoke some "Ee-eye, ee-eye, oh" protests in EU member states with a lot of really big farming operations, notably the UK and Germany. But it would allow support to be transferred into the rural development budget. One of Boel's key questions is: Since market prices today are in such good shape, should community intervention revert to its original purpose as a real safety net - for those who most need it?

EasyJet makes up ground on rival Ryanair

EasyJet is squaring up to its budget flight rival Ryanair, predicting its profits will grow 20 percent next year. That's against a Ryanair profit forecast of 17 percent. In the last 12 months EasyJet has seen its earnings rise by 50 percent. It's been helped by ancillary revenues such as charges for speedy boarding passes and fees for hotel bookings made with the flight purchase. Pre-tax profit forecasts of 324 million euros are fast catching Ryanairs predicted 465 million for 2008, as the two expand the battle from the UK to the rest of Europe.

Worse news for Northern Rock prompts UK response

Northern Rocks problems seem to be worsening after the lender revealed offers to take it over substantially undervalued the company. The bank had to borrow 36 billion euros from the Bank of England two months ago on the back of the US sub-prime credit crash. British finance minister Alistair Darling told parliament this money would be repaid. He also refused to rule out future help for anyone wanting to rescue Northern Rock. However he added that bidders should not take it as given, especially as continued state aid goes against EU rules. But the offers made so far are "materially below" the share price, say Northern Rock. That may not be the case for long. Its shares plunged a further 21 percent since that announcement to a new all-time low. So far there are just two bidders for the Newcastle-based bank, which employs around 6,000 workers, one of which is Sir Richard Branson's Virgin. The bank says it's still open to offers

Oil moves in on the 100 dollars a barrel mark

Oil prices continue to rise and closed near the 100 dollars a barrel milestone while the US currency remains weak. US light, sweet crude hit 99.29 dollars in Asian trading and London Brent crude rose 50 cents to close to 96 dollars a barrel. A barrel of oil began the year at 61 dollars a barrel and from August prices have shot up some 45 percent as speculative investment rises, supplies tighten pushing the dollar down.The price of oil is having an impact on Asian markets and despite overall growth oil prices may damage prosperity. Kim Jung Hyon is a South Korean Financial analyst, he said, " The oil price is highly likely to exceed 100 US dollars because the weak US dollar pushes up commodity prices and the oil demand is expected to rise in winter. This will raise the cost burden on companies and increase inflationary pressures." Some 32 percent of people surveyed in the US said they would drive less if oil prices kept rising.

Labelled a “nutter”

Tony Blair avoided talking about his religious views while in office for fear of being labelled "a nutter", the former prime minister has revealed. In an interview for BBC One's The Blair Years, he said that his faith had been "hugely important" to his premiership. During the interview, Mr Blair said having faith was a crucial component for him in having the character to take on the prime minister's job. "For me having faith was an important part of being able to do that," he said. But while it was commonplace in the US and elsewhere for politicians to talk about their religious convictions, he added, "you talk about it in our system and, frankly, people do think you're a nutter". Peter Mandelson, a close confidant of Mr Blair, said: "He's not an exhibitionist when it comes to religion but deep inside him it is very, very important. Sir Menzies Campbell, the former Liberal Democrat leader, suggested that Mr Blair may not have been so politically successful had the relationship between his beliefs and his actions in office been better known. "The public might have been less willing to give him the triumph of three consecutive general election victories if they'd known the extent to which ethical values would overshadow pragmatism," Sir Menzies said.