By Christian Odendahl via Macropolis|With the new government in Greece preparing for the negotiations with the troika, the German position in particular has been a topic of debate, both in Greece and on markets.
By Benjamin Cole via Historinhas | The unemployment in Greece is 25 percent. The Greek economy has shrunk by 29% since 2009. That is a full-blown economic depression, an outright failure of macroeconomic policy.
WASHINGTON | By Pablo Pardo | Guess which country pioneered Quantitative Easing in Europe… Exactly: Germany!
MADRID | The Corner | Spain is to be one of the first beneficiaries of the European Commission´s Investment Plan for Europe, with €3.2Bn being allocated to the country to support the SME sector.
MADRID | By JP Marín Arrese | The landslide victory snatched by leftwing Syriza plus the sizeable score recorded by parties opposed to the austerity measures represents a challenge to Europe’s orthodoxy in addressing real adjustment. Greek voters have voiced their rebuke to policies encompassing significant sacrifices but failing to redress a dismal economic record. Scrapping key elements of the welfare state and imposing harsh conditions on citizens has resulted in widespread poverty. In addition, the sentiment the troika was running the country has infuriated many of those going to the polls on Sunday. For all the popular support received, Tsipras faces a formidable challenge ahead in delivering his election promises.
MADRID | By Sean Duffy | Victory for the left-wing party of Alexis Tsipras has brought the European project into unchartered territory. The result has given the new Government a mandate for change, but the game of poker may be just beginning.
MADRID | By JP Marín Arrese | The ECB unleashed a monetary onslaught yesterday aimed at breaking the stubborn deflationary pressures and sluggish growth have shown up to now. The massive artillery barrage mercilessly pounded enemy lines with tons of fresh money, leaving defenders no other option than unconditional surrender. With all ammunition and reserves engaged in this breathtaking D-Day, the ECB would find itself helpless should its gamble fail. As previous landings ended in disaster, the issue now is whether this assault will work as planned.
By Gabriel Sterne via MacroPolis | It is easier to write down big questions on Greece’s future; harder to answer them: (1) Will Syriza win with an overall majority?; (2) Will a new programme be agreed in time?; (3) To what extent will it stay on track?; (4) How much additional debt relief and financing will the Troika give to Greece, and in what circumstances?; (5) If and when the wheels come off the programme, is an exit inevitable? Would it be managed or chaotic? One thing we can be sure about though. The scene is set for a political showdown, the likes of which the Euro-crisis has not yet seen.
MADRID | By Ana Fuentes | Amid huge market expectation, ECB’s president Mario Draghi unveiled THE operation aiming to spur growth in the eurozone: the European QE will consist of €1.1tn sovereign bonds purchases, or €60bn a month until September 2016, beginning in March. A crucial move in exchange for low risk sharing (only 20% of bonds purchased by ECB, 80% by national central banks; and Greek bonds are expected to remain out). The euro touched an intraday low of 1.1451 dollars.
MADRID | By Ana Fuentes | Hours before ECB’s president Mario Draghi unveils its big easing program, we spoke to think tank Bruegel central banks’ expert Silvia Merler about an eventual national risk bearing. It could be a way to make QE more acceptable by Germany, she believes, although “it should be traded-off against a significant size” (meaning more than the €50bn purchases per month some market watchers are talking about).