MADRID | April 27, 2015 | By JP Marín Arrese | The Euro-group meeting in Riga ended in bitter acrimony, Greece’s main creditors expressing their dismay at Varoufakis’s refusal to table credible reforms. They voiced deep mistrust on the chances the Hellenic government might escape from a full-fledged bankruptcy. Both Schäuble and Draghi seem ready to throw in the towel, thus triggering speculations on B plans involving a covert Grexit.
ATHENS | April 22, 2015 | By Nick Malkoutzis via MacroPolis | The Greek government made another payment to the International Monetary Fund earlier this month. This time it was just 450 million euros, a relatively manageable amount compared to the 1.5 billion that Greece had to pay back to the IMF in March. Each of these payments brings relief that a possible default has been avoided, but they also bring greater anxiety that a default is getting closer.
The Corner | April 21, 2015 | Markets remain divided about the Greek debt negociations –or rather the lack of them. Time is running out and Athens’ legislative act asking public sector entities to transfer idle cash reserves to Greece’s central bank, in order to deal with a cash squeeze, proves it. That plan could raise about 2 billion euros ($2.15 billion), according to sources quoted by Bloomberg.
The Corner | April 16, 2015 | Net financial wealth of Spanish households reached a historic maximum of 1.17 trillion euros in 2014, 13.5% more than a year before. This shows the reduction of indebtedness, since the gap between savings and loans has increased in the last 12 months, in line with the trend of recent years.
The Corner | April 15, 2015 | According to Barclays, the boost from lower oil prices on household consumption has materialised and has been stronger than expected, while the ECB’s aggressive QE has exceeded their already high expectations, creating the most favourable monetary and financial conditions since the start of EMU.
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.
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.
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.
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.
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.