“The EU has to make itself attractive” in the wake of Brexit. Brussels is trying to force London to accelerate its departure process “as soon as possible, despite how painful that may be,” according to European Commission President Jean Claude Junker. During the European Summit on Tuesday, the the scenario for the new EU with 27 Member States will be presented.
The European Fund For Strategic Investments (EFSI), better known as the Junker plan, was marketed as a “strategic” investment plan which would create jobs and infrastructure and, moreover, would not cost anything.
The market has already discounted that the ECB will announce new stimulus measures on December 3rd, modifying the current debt purchasing programme. But monetary policy only goes so far, and apart from the central bank’s measures, the Eurozone needs more public and private investment to recover its growth potential.
ViEUws | In November 2014, Jean-Claude Juncker became leader of the EU’s most powerful body – the European Commission. Backed by a large majority of MEPs, the former Luxembourg Premier promised an “agenda of reform”.
The markets sway to the rhythm of the central banks, but it’s not clear that monetary policy alone can solve the serious economic problems affecting most of the planet. Perhaps it would be a good thing to take heed of Summers idea that it is preferable to back productive investment and not the creation of bubbles supported by low interest rates.
BRUSSELS | April 1, 2015 | By Alexandre Mato | Former British MEP Stuart Holland, who was economic assistant to Jaques Delors when the French politician was the EC President, speaks out against German finance minister Wolfgang Schäuble’s negative influence in attempting to derail the Juncker Plan.
The Corner | March 9, 2015 | The ECB will finally begin its purchasing of sovereign bonds today, but as ever, the Greek question continues to loom in the background. Greece will return to the forefront of events today at the meeting of the Eurogroup of finance ministers in Brussels. Weekend remarks from the Syriza led government seemed to spell out just how precarious the government’s financial situation now is. Yet once again, the country and its creditors appear polls apart on how best to proceed.
BRUSSELS | March 5, 2015 | By Alexandre Mato | When presenting its annual report, ‘Going for growth’ in Brussels, the Paris-based institution raised some doubts about the ongoing recovery in Europe. Structural, long-term unemployment and low productivity in some Member States are becoming the main economic issues of concern, with neither investment nor fiscal adjustments seen as the antidote.
MADRDD | Sean Duffy | Markets are likely to remain volatile in the week ahead as investors await indication on Greek standoff.
LONDON | Sigrún Davíðsdóttir | Forget economics, politics is key to understanding the Eurozone. The cries of “Grexit” lately have mostly been a repetition of an earlier discourse: in February 2012 Citi’s economists Willem Buiters and Ebrahim Rahbari coined the term “Grexit,” by July 2012 estimating its likelihood to 90%. Cheered on by the media, economists have taken over the debate of the Eurozone which is why much of it has been such a futile exercise: it is not economics, which ties the Eurozone together but the political determination of its leaders to make the euro work. With political will likelihood of any exit is 0. Ergo, Grexit is as unlikely now as it has always been in spite of the EU brinkmanship. One route Greece seems to be exploring is a tried and tested one: the “bisque clause” from 1946.