Europe/Middle East Archives - Page 11 of 15

Delaying A Eurozone Breakup Will Only Make Matters Worse: Nouriel Roubini

Germany and the ECB are now relying on the hope that large-scale liquidity will buy time to allow the adjustments needed to restore growth and debt sustainability in the eurozone periphery. But, if a eurozone breakup can only be postponed, delaying the inevitable would merely make the endgame worse – much worse.

NEW YORK – Whether the eurozone is viable or not remains an open question. But what if a breakup can only be postponed, not avoided? If so, delaying the inevitable would merely make the endgame worse – much worse.

Germany and France Beat Growth Forecasts

The German and French economies showed signs of resilience as the two eurozone countries performed slighter better than expected. In particular, Germany’s growth slowed less than excepted while France narrowly escaped recession with zero growth in Q2.

Germany, the eurozone’s largest economy, posted modest economic growth of 0.3 percent over the quarter, marginally beating forecasts.

However, economists warn that the German economy could soon start to shrink unless a decisive solution is taken for the currency bloc’s debt crisis.

Will August Be A Decisive Turning Point For The Eurozone Crisis?: Kemal Dervis

August has been a dangerous month in European history, but this year it could be the turning point for the eurozone – and perhaps for the world economy. That depends on whether – and how – the European Central Bank makes good on official pledges to do “whatever it takes” to preserve the euro.

We Don’t Need German Money: Italian PM

In an interview with German weekly, Der Spiegel, Italian Prime Minister Mario Monti declared that his country does not need German cash. Instead, he says Italy needs the moral support of his European friends, especially Germany.

Pointing out that while five eurozone economies have requested and received international bailouts, Monti said Italy has not received “a single euro” of bailout monies.

He told Der Spiegel:

ECB Will Do “Whatever It Takes” To Save Euro… Just Not Now

When Mario Draghi, chief of the European Central Bank, vowed to defend the euro last week, analysts went as far as to speculate a lowering of interest rates and bond purchases by the bank. Yet the bank disappointed yesterday, offering nothing but inaction.

Expectations for bold actions had run high after ECB President Mario Draghi on Thursday last week vowed to do “whatever it takes” to preserve the euro.

ECB Vows to Defend the Euro

European Central Bank President Mario Draghi has promised to do “whatever it takes” to save the euro, raising expectations that the bank will soon step in to soothe jittered investors and markets that have sent borrowing costs soaring for countries like Spain and Italy.

The remarks were made during a question-and-answer session at the Global Investment Conference organised by the UK government to mark the start of the London 2012 Olympics.

Germany Risks Losing Coveted AAA Credit Rating

Europe’s paymaster and the region’s largest economy, Germany, is at risk of losing its stellar AAA credit rating as Moody’s reiterates its warning that no country is safe from the crisis that has already brought Greece, Ireland, Portugal and Spain to its knees.

Credit ratings agency Moody’s has put Germany’s AAA rating on negative watch, a sign that eurozone’s largest economy could soon be downgraded.

The Eurozone Exposed – How Europe Can Avoid A Prolonged Depression: Stefano Micossi

At their meeting at the end of June, European leaders acknowledged for the first time the multiple dimensions of the crisis, accepting that austerity – putting everyone’s house in order – will not suffice. What is still missing, however, is recognition of the need for greater flexibility on fiscal-consolidation efforts.

The Curse Of The Treasure Islands: How Tax Havens Are Sinking Europe’s Economy

EU states lose an estimated €1 trillion in potential revenue every year from tax evasion and avoidance activities. Much of this amount, it turns out, has been squirreled away to offshore tax havens – known otherwise as “treasure islands”. Can anything be done to recoup these losses?

The Euro’s Silver Lining – Why The Doomsayers Are Wrong: Norbert Walter

Crises are usually defined by sustained economic decline, high and long-term unemployment, poverty, rampant inflation, a precipitous fall in the exchange rate, fiscal deficits, high borrowing costs, and political dysfunction. But only a handful of “misery indices” are present in Europe today, and the region’s strengths should be able to overcome them.