France deficit grows
The Corner | April 13, 2015 | Current account deficit widens in France, but the euro zone’s second largest economy has retained its AA rating for the time being.
In Europe
IMF squeezes Greece while pocketing the profits: €2.5 billion since 2010
MADRID | April 10, 2015 | By Ana Fuentes | Investors breathed a sigh of relief on Thursday when Greece met its IMF loan commitment of €460 million euro ($485 million). Markets are predicting that Athens and its creditors will reach an agreement, which would put an end to the standoff which has developed since the Syriza government was elected earlier this year. Still, creditors are using the leverage provided by the country’s current cash shortage to force Athens to make major reforms. Meanwhile they are pocketing huge interest from the outstanding loans.
Industrial production in Spain rises by 0.6%
The Corner | April 10, 2015 | Stronger than expected growth in the Spanish industrial sector is yet another indication that the economy is recovering, while a quiet day ahead is expected on European markets which were pacified by Greece’s payment of an outstanding I.M.F loans.
Greece and its lenders: Where do you start?
ATHENS | April 8, 2015 | By Nick Malkoutzis via MacroPolis | Since it was first recorded in 1944 by American public administrator David Lilienthal, the following anecdote has been told many times and in many ways: A traveller asks a local man for directions and, after much thought, the latter turns to the visitor and says: “My friend, I tell you; if I were you, I wouldn’t start from here.” As Greece and the eurozone remain some distance apart on how to conclude their bailout negotiations, it seems a good time to return to this tale.
German economy getting stronger
The Corner| April 9, 2015 | Strong figures from German industry will offer further encouragement to EU policymakers that the economic recovery is now on the right track. German industrial production grew by 0.2%, beating expectations of a 0.1% rise. The increase in industry excluding energy and construction was 0.5% according to latest data from the Bundesbank.
Greek economy: What in the world will we do without barbarians?
April 8, 2015 | By Yannis Mouzakis via MacroPolis | Just as the five-year anniversary of Greece’s first EU/IMF programme approaches – and despite marked procrastination in a number of other fronts – Greece’s coalition set up a parliamentary committee to investigate the country’s bankruptcy and the signing of its two memorandums with the troika.
Drop in Eurozone retail sales amid positive overall demand
The Corner | April 8, 2015 | Retail sales were fell by -0.2% in February after four months of growth, but observers will not be unduly worried following release of data from Markit which indicate that retail sales PMIs rose to their highest level since last November.
German factory output disappoints
The Corner | April 8,2015 | German factory output disappoints as fears of slowdown in the U.S and China hit exporters in Europe’s largest economy despite the weakened state of the euro. Elsewhere, retail sales are expected to contract in the euro area having shown gains since the final months of 2014.
14 year employment record set in March
MADRID | April 7, 2015 | By Fernando G. Urbaneja | There are two lingering black marks against the Spanish economy. The first is rampant unemployment, which is second only to Greece in the euro area and the OECD. The second is a large budget deficit-the largest in Europe-which remains stubbornly high and is still some way off the target of 3% of GDP. Against that backdrop, the Spanish economy has returned to stronger growth this year, with forecasts showing the economy could expand by as much as 3%.
Eurozone confidence hits eight year high
The Corner | April 7, 2015 | Although the eurozone PMI for March was slightly disappointing, confidence reached its highest level since 2007, according to data released on Tuesday.