Does Europe remains focused on austerity and structural changes as its preferred strategy to deal with crisis? Most likely not. Why? The European Union statistics office on Wednesday noted that nine of 17 euro-zone member states are now in recession, with France being the newest significant member of that club. The only country with growth…
Čítať viacSo it happened. Finally. The recession is over. The 0.3 % growth is considered as the end of it. Not so hurry. Cautious is also Mari Draghi who said that he is very, very cautious about prospects for growth and added that Syria situation could lead to some geopolitical risks. The rates remain record low.…
Čítať viacThe Governing Council of the ECB decided that main interest rates will remain unchanged. The reasons behind the decision were facts as repayment of 22% of the LTRO program which reflects to improvements in financial market confidence, weak GDP outcomes in 2012 and anchored inflation with estimation of 1.8 percent in February. The Bank of…
Čítať viacIncreasingly, we can see that the government declares something, but in practice does the exact opposite. There is not almost a single day without some governmental representative claiming that the priority for government is to tackle unemployment and create jobs. And still, at the same time, in addition to these statements, the same government and its…
Čítať viacThe world has been slipping further into economic illiteracy over the past five years, with seemingly no country immune. From the United States, ostensibly still a bastion of classical liberal orthodoxy, we have seen rules enacted (and upheld by the judiciary!) that allows government to force consumers to purchase a specific product (in this case,…
Čítať viacThe British PM has announced his plans of letting the Brits decide on “Britain in the EU” on referendum. David Cameron promises to do so in case Conservative party forms winning coalition in 2015 national elections. Therefore, it has been highly debated whether PM believes that Britain out of the EU is the way to…
Čítať viacThe rescue package for Cyprus finally consists of a 10 billion euro bailout from the ESM and it has one crucial condition of taxation all deposits larger than 100,000 euros inflicting significant losses for depositors — possibly up to 40 percent. EU officials have stressed that this measure was a „unique step“ in Cyprus. But…
Čítať viacIndex of Economic Freedom was released last week. Slovakia was 57th down 15 places from previous year. The main reason behind decline of economic freedom in Slovakia was higher taxation, non-flexible labor market regulation and slow and inefficient judiciary system. We belong among other 59 countries where economic freedom decreased this year. On the other…
Čítať viacEmergency euro summits being organised at the last minute. EU leaders discussing new proposals until late night. A conclusion is reached in the early morning: „we need another emergency summit“. This is how it looked five years ago, when the EU fervently tried to find a solution to the Greek crisis. One that would allow Greece to…
Čítať viacEuropean Commission President Barroso started to criticize the austerity measures that the EU has imposed on the mainly Southern European members states in economic crisis. He stated that while the policy may be „fundamentally right,“ it had „reached its limits.“ In the short-term, „a stronger emphasis on growth“ is needed. Look at the beauty of…
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