When there are no good news in short term let´s create them in the long term. This is definitely slogan of all politicians. European commission for example predicted very slow growth for the EU and 0.3 % contraction for the euro club. BUT we should expect better tomorrows as usually in the long term. The…
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…
The 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…
The 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…
European 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…
The most important news of this week was connected with US and debt ceiling debate. But let´s start as usually with Europe. Austerity measures are more and more unpopular. One of the examples is Ireland today. Their budget proposal is not as austerity budget as it should have been. Ireland will drain a further 1.5pc…
I think that the Cyprus situation was a dominant one during the last week. I do not want to bother you with the same information you already read somewhere else and which are not probably accurate because the situation is changing every minute. I would like just to make some small comments. First, Cyprus has…
Will the crisis trigger anti-environmental agenda? Who knows but e.g. Antonio Tajani, the European industry commissioner stated that „I am in favor of a green agenda, but we can’t be religious about this. We need a new energy policy. We have to stop pretending, because we can’t sacrifice Europe’s industry for climate goals that are…
After the optimistic version that everything is solved in the EU the economy of euro group shrank by 0.6% and EU 27 area was down by 0.5 % in the fourth quarter which was worse than forecast. Germany, France, UK, Portugal, Spain, Italy. All of them were down. The export data fell 1.8% in December…
It is Christmas time and we do not have for you so many stories. But if somebody thinks that nothing is going on is definitely wrong. The IMF predicts that France will miss its 2013 target for a budget deficit of 3% of GDP. It is much more probable that France will have 3.5% deficit…