Interest rates will stay low to support economies and jobs, European Central Bank Governing Council member Ewald Nowotny told a newspaper, dismissing complaints that low rates were hurting savers. “Given the economic situation, the level of interest rates will remain low because it is in the overall economic interests to have this support for growth … Continue reading
The representatives of the European Commission, the European Central Bank and the International Monetary Fund, however, are deaf to his warnings. They are demanding additional belt-tightening measures, including more layoffs. Continue reading
The mind goes numb. Spanish unemployment jumped by another 237,000 people in the first quarter to 6.2 million, or 27.2 per cent. The country is losing 3581 jobs a day. There are 1.9 million households where no member of the family has a job. The unemployment rate has reached 36.8 per cent in Andalusia, Spain’s … Continue reading
The euro zone will slow its budgetary belt-tightening to help reinvigorate economic growth, EU Economic and Monetary Affairs Commissioner Olli Rehn has said. Mr Rehn’s comments are being viewed by some as an admission that fiscal adjustments linked to the troika programmes in Europe are having a greater-than-expected impact on growth. Chosen excerpts by Job … Continue reading
THE euro area is mired in recession and unemployment in the single-currency zone continues to scale new heights, reaching 11.8% on figures out this week, up from 10.6% a year earlier. But the European Central Bank did nothing to help today, leaving its key interest rates unchanged. The governing council took the decision unanimously, ECB … Continue reading
When the European Parliament turned Yves Mersch down for a top central banking post, it wasn’t because he lacked the expertise or experience; they rejected him because he is a man. Mersch, a Luxembourger who is highly regarded by his peers, had been expected to get the job on the European Central Bank’s all-male board … Continue reading
Suddenly, it has become easy to see how the euro — that grand, flawed experiment in monetary union without political union — could come apart at the seams. We’re not talking about a distant prospect, either. Things could fall apart with stunning speed, in a matter of months, not years. And the costs — both … Continue reading
The European Central Bank has stopped providing liquidity to some Greek banks as they have not been successfully recapitalized, the ECB said on Wednesday, confirming news earlier reported exclusively by Reuters. The news sent the euro lower against the dollar, fanning concerns among investors and in Greece that the country may have to leave the … Continue reading
Why the Euro is kept too stong and is not at par with the U.S. $. Is it only a question of pride, with its immense prejudice in human terms ?
Welcome to life in a suboptimal currency area. After all, countries that share a currency also share monetary policy. If they don’t share fiscal policy too — that is, there is no centralized treasury — they can get into trouble. Just ask Europe. But as Christian Odendahl at The Economist points out, this also means that … Continue reading
The UK has narrowly avoided a double-dip recession but will struggle for the rest of the year unless businesses stop hoarding cash and start investing, a forecaster warned today. Emergency measures from the Bank of England, European Central Bank and US Federal Reserve have boosted confidence and stabilised financial markets, pulling the UK back from … Continue reading
doesntevenmakesense.com has gathered the following statistics about the European economic crisis that are ‘almost too crazy to believe….’ Greece #1 The Greek economy shrank by 6 percent during 2011, and it has been shrinking for five years in a row. #2 The average unemployment rate in Greece in 2010 was 12.5 percent. During 2011, the average unemployment rate was 17.3 … Continue reading
For nearly 600 years, Portugal had one of the greatest colonial empires in Europe, commanding trade centers in Africa, South America and China. Ana, a 28-year-old unemployed Portuguese woman, waits in line in Lisbon on Jan. 3 to discuss her unemployment benefits. Austerity measures have made it difficult for many Portuguese to find work. Now, … Continue reading
Mario Draghi, president of the European Central Bank, spoke with Brian Blackstone, Matthew Karnitschnig and Robert Thomson of The Wall Street Journal on Feb. 22 about the importance of austerity in Europe, the Greek bailout deal and the ECB’s recent decision to exempt its Greek bond portfolio from losses. WSJ: What inning are we in … Continue reading
Provisional estimates show that quarterly gross domestic product (GDP) growth in the OECD area decelerated sharply to 0.1% in the fourth quarter of 2011, against 0.6% in the third quarter. Source: oecd.org Quarterly National Accounts – GDP Growth – Fourth Quarter 2011, OECD.