Are Euro zone debt levels sustainable?
MADRID | Forcing peripheral economies to sacrifice growth leads nowhere except to future tempests should their debt sustainability come under suspicion once again.
MADRID | Forcing peripheral economies to sacrifice growth leads nowhere except to future tempests should their debt sustainability come under suspicion once again.
MADRID | Being a policy issue prominently underlined in all main German parties’ manifestos, the full safeguard bank creditors have enjoyed under past bail-out schemes seems doomed in future.
MADRID | Any economy, save for a Soviet one, is run under the healthy guiding rule that smart decisions are rewarded and wretched ones get penalised by the market.
MADRID |Nicosia played with fire for a long time. And Europe has proved again its inability to prevent risky situations and handle them without pulling the trigger.
So long stiff capital control measures are in place the economy will enter into a free-fall. But as soon as they are lifted, the run on accounts might likely lead to a banking collapse.
MADRID | Was it necessary to impose such a hard medicine for a bail-out amounting to roughly €10 billion? The only plausible answer lies in the forthcoming German general elections bound to banish all common sense for future months.
MADRID | The Spanish government has suddenly disappeared from Europe’s scene. In the midst of a deep recession it crosses fingers hoping the German general elections’ aftermath might break the current deadlock on financial mutualisation and help to reconstitute the Southern front.
MADRID | The most effective cuts were delivered by sheer lack of money as regional and local authorities faced a disruptive lock-out in the credit market.
MADRID | Something is moving in the EU. Those who up to now advocated doses of further austerity to cure Euro zone ailments, start faltering at the huge damage inflicted on the economy.
MADRID | Europe is unable to deliver growth on its own. By sticking to fiscal virtue, no matter the price as Ms Merkel has recently voiced, it lacks enough stamina to get out of the current recession.