Physician heal thyself?

This is actually quite funny and both stories come from the ultra europhiliac (unashamedly so, unlike some other organizations I can think of) EU Business.

As people who have been following news from the EU know, the rather ridiculous plan to make a forty per cent quota for women on boards of listed companies mandatory has been shelved for the time being. (I shall be watching comments on this posting carefully and there may well be some banishments for utter stupidity. You have been warned.)

However, the amusing part of it is that the ECB has been hoist by the same petard.

European lawmakers snubbed the EU's leaders on Thursday when they voted down the leading candidate for a key European Central Bank post to protest a lack of women candidates for the job. Recognised on all sides as well qualified, Luxembourg Central Bank head Yves Mersch lost out after a series of sharp exchanges over the representation of women at the top level of European political and business institutions.

Forty per cent. gentlemen?

Suing the ECB?

The Economic Voice among others reports that the UK Treasury is set to sue the ECB. Goodness me, what's that about? Actually, something rather serious:

The UK looks set to take the European Central Bank to court over its proposals to only allow clearing houses that operate within the Euro-zone geographical area to trade in some of the securities denominated in the single currency.

This would then force some institutions to leave the UK’s City of London for locations in Paris or Frankfurt.

Same old, same old, you might say. There is a new twist to this story of trying to destroy the City of London:

The London Stock Exchange is currently in talks with the intention of buying LCH.Clearnet, Europe’s last independent clearing house.

The problem is that under EU rules, which the UK Treasury says applies here, there is the presumption of free trade. But the ECB would presumably like to bring clearing into the 17 member Euro-zone for better control.

The UK Government will fight this proposal as it goes against the requirements of the larger EU of freedom of movement of services and capital as laid out in various treaties.

But as we all know, such considerations matter little.

This latest move could be interpreted as the Euro-zone just trying to get its house better in order or perhaps France and Germany manoeuvring to enhance their own financial services sectors. But it could also be construed as yet another move to marginalise the UK or even move it that bit closer to joining the Euro-zone.

The EU treaties have already been effectively torn up over the bailing out of countries such as Greece, as the treaties do say that bail-outs are not possible. So more breaches that are in the interests of the Euro are almost a certainty and are likely to be supported by the EU courts, whatever the UK says.

Nothing matters when the project and its outgrowth, the euro has to be defended.

There is more in the Telegraph:

The Government will launch its action on Wednesday and, if the ECB does not relent, will challenge the policy in the European Court of Justice. As well as breaking European law, ministers believe it contravenes international efforts to reform derivative markets through the G20, which has called for reforms to be implemented in an "internationally consistent and non-discriminatory way".

A Treasury spokesman said: "This decision contravenes European law and fundamental single market principles... That is why we have begun proceedings against the ECB through the European Court of Justice. The Government wants to see this resolved swiftly and without involving the courts, but if necessary will not shy away from continuing legal action."

We shall watch with interest.

And the President of the European Central Bank ...

.... will be the Italian Mario Draghi, after some more shenanigans.

The 63-year-old economist and banker has been given the post for eight years and will replace current ECB President Jean-Claude Trichet, who steps down on Oct. 31. His appointment had been thrown into doubt with the refusal of another Italian, Lorenzo Bini Smaghi, to step down from the ECB executive board. France, who would have been left without representation on the board after the departure of Trichet, previously implied that it would not back Draghi for the top job unless Bini Smaghi was replaced with someone French.

Initially, Bini Smaghi -- who is not due to leave his post until May 2013 -- refused to yield his position. But European sources said Friday that he had assured EU Council President Herman Van Rompuy and French President Nicolas Sarkozy that he would relinquish his role in the coming weeks.

Chancellor Merkel insists that no pressure was applied on Signor Smaghi; or if it was, it would in any way endanger the ECB's independence. Well, she would say that, wouldn't she.

Will this make any difference? Unlikely. It looks like Greece will receive a second tranche of other people's money, will promise to mend its ways and will ignore all those promises. Until the next time, which will come very soon.