In Europe

Syriza

Greek politics in thrall to new faces and old ideas

ATHENS | By Nick Malkoutzis via Macropolis| SYRIZA leader Alexis Tsipras was 32 when he burst onto the central political scene in Greece by attracting 10.5 percent of the votes in the Athens municipal election in 2006. At the time, it was unprecedented for such a young candidate, especially one representing a left-wing party, to gain this level of support. Eight years on, and with Tsipras leading SYRIZA, 33-year-old Gabriel Sakellaridis gained 20 percent for SYRIZA in the electoral contest for the Athens mayorship.If we use this as a yardstick to measure the party’s progress, one can only conclude that SYRIZA has made big strides.


europe growth

Low growth looms over Europe

MADRID | By J.P. Marín Arrese | Europe faces the daunting challenge of sailing to the safe shore, with little growth in sight. Southern economies, save Spain, are struggling to scramble out of recession. Others such as France seem stuck in a perilous no man’s land. Only Germany seems endowed with enough stamina for securing a healthy path, even if its performance looks rather lacklustre when matched with the one the US is witnessing.


No Picture

Preparing for the ECB’s June action(s)

LONDON | By Barclays analysts | The latest disappointing inflation and growth data have reinforced market expectations of ECB action(s) in June. The significant rally of short rates seems consistent with expectations of a policy rates cut, as well as a chance of additional liquidity injections. At this stage, we see limited room for a further rally and suggest paying tactically 1y Eonia.


p28 European elections

EU elections: The iron rule of economic growth and popular support

WASHINGTON | By Pablo Pardo | In 2007, 70 percent of Spanish citizens had a favorable opinion on the EU. After seven years of recession, banking collapses and sovereign debt crisis, support is now at just 50%, two points below the United Kingdom’s. This is not the only area where Euro-skepticism has taken hold in the Spanish public opinion. Only 38 percent of Spaniards believe now that “the [European] economic integration has strengthened the economy.” In Britain, the proportion is 41 percent.

 


Europe's immigration

Norwegian Immigration and Europe’s Swiss Dilemma

At first glance, Norway and Switzerland seem to have much in common. Both are prosperous alpine nations with relatively small populations (5.1 million and 8 million), while they also have some of the lowest unemployment levels in Europe (3.6% and 3.5%). In fact, both nations are enjoying tremendous success amid turbulent economic times. Norway , however, will not seek to emulate Switzerland’s policy on immigration quotas.

 


germany's market-focused?

Is Germany the euro’s owner?

MADRID | By Miguel Navascués | Nobody questions Germany’s big efforts in the EZ, but Spain accumulates an external debt of 100% of GDP as Germany accumulates capital abroad amounting for 100% of its. When a country does not cease to make external surpluses, it generates parallel deficits in others. These gaps are corrected by means of a rate exchange appreciation- depreciation or by reinvesting the surplus in the countries in deficit. Neither of which is happening today.


montebourg

France: the end of the laissez-faire

MADRID | The Corner | Remember when back in 2005, politicians in Paris stood up in arms amid rumours of Pepsi trying to bid for Danone? That operation never saw the light but from now France’s government will have more power to block foreign takeovers in strategic industries such as energy, transport and telecom. It’s a “necessary rearmement for the Government,” argues Economy and Industry minister Arnaud Montebourg, who stopped the Dailymotion acquisition and recently appeared in a national magazine wearing the iconic marinière T-shirt, a French brand watch and holding a Moulinex mixer. Economic patriotism that might be useful before the EU elections but can also hurt a state in need of foreign investment.

 


No Picture

Germany and Spain push EZ up

MADRID | By Julia Pastor | Germany and Spain are leading the Euro zone’s economic recovery from the EZ’s North and South, respectively. 1Q14 data point out the German economy grew by 0.8% and Spanish by 0.4%, while France’s GDP was flat and Italy, Portugal and the Netherlands went back to recession. Merkel’s following the EC recipes to increase wages and Rajoy’s reforms -despite a big, painful impact on the Spanish population- seem to have bear fruit.


No Picture

Spanish banks mitigate reliance on ECB

MADRID | By Fernando G. Urbaneja | In the midst of the financial turmoil (2012), the ECB facilitated liquidity to avoid the collapse of the European banks when the inter banking market was dried up and nobody lent money. The central bank had to act as “last resort banker” and maintain the system as well as guarantee liquidity. Those credit lines are amortized once their function has been accomplished. Now, they are preparing other measures to stimulate growth and avoid other threats such as deflation or stagnation.


Credit expansion

To control credit expansion is tricky

MADRID | By Luis Arroyo | In his beautiful and easy-reading blog Fixing the Economists, Philip Pilkington recently posted about the difficulties of the monetary policy to stabilize the economy. The most interesting aspect is perhaps that his comments are based on old and forgotten economists who wrote very well and had clear ideas. In this case, he chooses Kaldor and Harrod, two smart Keynesians.