Top Stories

In Europe

No Picture

In Europe 17th January 2014

Everyone Praises Reforms in Spain But What About Structural Problems?

MADRID | By Jaime Fernández Santisteban | After months at the centre of controversy, Spain is making headlines about recovery and everyone seems to be bullish on the country. Spain is almost back to pre-crisis levels, says IMF’s Lagarde. But is it? What has changed then? Marta Soria and Rebeca Gimeno are a couple of journalist-economists behind Economía en dos tardes, a blog bringing economy and business closer to people. They shared with The Corner TV their outlook for the year that is just beginning. 

 

No Picture

In Europe 16th January 2014

European Sovereign Debt, Again No Risk Asset

MADRID | By Julia Pastor | The  ECB confirmed on Wednesday that held-to-maturity sovereign exposures portfolios will not be punished, and consequently marked-to-market, in the financial system stress test to be performed at the end of 2014.

Eu leadership 1

In Europe 16th January 2014

The EU, the troika inquiry and the big disconnect

ATHENS|By Nick Malkoutzis at The Agora|After almost four years of monumental decisions being taken behind closed doors, without consultation and outside the legal framework of the European Union, the European Parliament is conducting an investigation into how the eurozone bailouts have been constructed and implemented. This will include visits to the countries affected as well as hearings with people involved with Troika decisions.

 

No Picture

In Europe 14th January 2014

Paid Corruption In Germany: The Pofalla Case

FRANKFURT | By Lidia Conde | What happens when the supervisory board in a company discovers that its president conceals his intentions of improving the relationship with the political power by hiring Angela Merkel’s “man of confidence”? That’s what has happened in Deutsche Bahn, the German railway, whose supervisory board learned from the press that Ronald Pofalla (Merkel’s cabinet chief barely two weeks before) was joining the governing board.

No Picture

In Europe 13th January 2014

Greece’s Odd EU Presidency 2014

BRUSSELS | By Jacobo de Regoyos | Athens will preside over the European Union for next semester as their citizens take the streets against budgetary cuts and 30% of their population is unemployed. For some, this magnificently ilustrates what an united and supportive Europe means. For others, allowing Greece, under creditors’ surveillance, to be an international reference during half a year is some sort of a risk. In order to avoid gloomy predictions, Foreign Affairs’ Minister, Evángelos Venizelos, has promised hard work and austerity:  “A spartan presidency with Athenian values”.

No Picture

In Europe 10th January 2014

Draghi Calls For Caution Amid Markets’ Excessive Euphoria

MADRID | By Francisco López | In the midst of the markets’ euphoria thanks to the sharp fall in the risk premiums of peripheral countries, the big commander came and ordered to stop. The president of the ECB, Mario Draghi, appealed to investors to be cautious facing the risks of a “fragile and weak” recovery in the Eurozone and about an inflation whose expectations on the medium-term have worsened.

ECB Attentive to money market conditions and inflation outlook

In Europe 10th January 2014

ECB: Attentive to money market conditions and inflation outlook

LONDON | By Barclays analysts | The ECB left monetary policy unchanged as expected and strengthened the downside bias of its forward guidance somewhat. Mario Draghi insisted on the fragility of the economic recovery and repeated that the ECB would be ready to act should downside risks materialize. We still think that monetary policy should be kept unchanged at least for the next two years, but we acknowledge the risk of further easing should inflation and inflation projections fall further. Besides, liquidity measures could be introduced to support the financing of the economy.

No Picture

In Europe 8th January 2014

France: Where reforms need to be made

LONDON | By Barclays analysts | France’s macroeconomic situation does not look that bad and on average the country compares well with other developed economies. It does not suffer from a major imbalance in terms of yearly flows (trade, finances, etc). However, weaknesses, perniciously accumulating over the years, have now been laid bare by the crisis.

Dublin taps on capital markets

In Europe 8th January 2014

Dublin taps on capital markets

MADRID | By JP Marin Arrese | Last Tuesday, Ireland raised € 3.75 bn on a 10-year bond issue, for the first time since it exited the bailout scheme last month. Investors’ appetite run high as offers placed reached roughly four times that figure. The yield stood at 3.54% showing that confidence is swiftly pulling back to fair standards. It was a gorgeous day for the island’s economy as Dublin was able to cash half of government’s funding needs for the whole year, at such a reasonable cost.