More Debt Means Better Rating
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 … Pokračovanie článku
Tag Archives: US debt
Merkel won but reforms failed
German elections – actually the most important EU election – ended by the victory of Angela Merkel. On the other hand the election ended with the defeat of strong right … Pokračovanie článku
Nothing Has Been Solved
The Euro crisis is not definitely solved. Greece unemployment rate in April 2013 was 26.9% compared to 23.1% in April 2012 and 26.8% in March 2013. The number of employed … Pokračovanie článku
Be Careful What Money You Have in the Bank
The last week meeting of EU finance ministers brought about new rules on bank collapses. The new rules are definitely inspired by Cyprus event. Under the new regime, banks’ creditors … Pokračovanie článku
Power of Central Banks Moved By Markets
Mario Draghi verbally intervened once again and does not hesitate to tell anything. He said that the ECB is considering further non-standard monetary policy tools and will deploy them if … Pokračovanie článku
More centralization
ECB decided not to make any changes to the policy and all rates remained unchanged. Mario Draghi said that ECB sees 0.6 % decline in GDP within Eurozone in 2013 … Pokračovanie článku
We Need Reforms
The European Central Bank warned about the risk of a renewed banking crisis. The main reasons behind are the euro zone’s slumping economy and a surge in problem loans. The … Pokračovanie článku
New Definitions
The ECB cut basic rates last week to proceed with verbal interventions this week as well. Mario Draghi said that they are ready to cut interest rates again if needed … Pokračovanie článku
ECB Confirmed Recession
At Bratislava´s meeting the Governing Council of the ECB rewrote the monetary history of Eurozone. Council decided to lower basic interest rates to 0.5 % starting from May 8th 2013. … Pokračovanie článku
Euro Will End in 5 Years
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 … Pokračovanie článku
UK and Germany Were Downgraded
Fitch Ratings has downgraded the United Kingdom to ‘AA+’ from ‘AAA’. The outlook is predicted as stable. The rating action reflects a weaker economic and fiscal outlook and possibility of … Pokračovanie článku
We Are Not Still Better Off
Euro zone finance ministers backed a 10 billion euro bailout for Cyprus and the European Commission would try to help the island’s economy grow again with better use of EU … Pokračovanie článku
Week of Weak Announcements
It was the week of central bank announcements – Japan (we will describe it below), Britain and ECB. Bank of England and ECB policy remained unchanged which means that interest … Pokračovanie článku
After Cyprus
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 … Pokračovanie článku
Will be Cyprus Rubicon moment?
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 … Pokračovanie článku