LONDON | By Barclays analysts | Although Q3 GDP data for euro area countries indicated growth for the second consecutive quarter, thereby confirming the end of the recession after six quarters of GDP contraction, it also showed the recovery to be subdued, uneven, and fragile.
COPENHAGUE | By Kim Faber, Tanja Parker Astrup and Jakob Sheikh at Politiken via Presseurop | With 29.5 per cent of the vote, the Social Democrats led by Prime Minister Helle Thorning-Schmidt avoided a long-predicted catastrophe in Danish local elections on November 19, reports Politiken.
MADRID | By Fernando G. Urbaneja | There is a problem with the European stress tests: they focus on solvency but forget about profitability, which is essential for the future of banks. The system doesn’t work properly and in a context of stagnant economy, banking faces a difficult future.
BERNA | By Le Temps via Presseurop | Now that banking secrecy has come to an end, “Swiss bankers are dreaming of Europe,” says Swiss daily Le Temps.
LONDON | By Barclays analysts | We discuss the Italian economic and financial situation based on data and analysis contained in the November 2013 Bank of Italy Financial Stability Report. Following almost two years of recession in Italy, positive growth should resume in Q4 this year. After a likely 1.8% GDP contraction this year, we forecast a 0.8% expansion in 2014.
MADRID | By JP Marin Arrese | The European Commission has undertaken a thorough review of national budgets following the sweeping powers conferred to it to ensure consistency across the Eurozone. When enacted, this move was heralded as breaking into new territory. Yet the opinions now delivered flatly fail to meet its ambitious goal.
BRUSSELS | By Gian Paolo Accardo at Presseurop | Whistleblowers are essential to democracy. They should therefore be granted protection, not least by the government. However, most European countries do not protect those, like former NSA agent Edward Snowden, willing to reveal corruption or illegal practices.
BERLIN | By Alberto Lozano | Housing prices in Germany have skyrocketed since 2010 -in big cities prices up to 25%, according to the Bundesbank, which points out overvaluation could reach 20%, giving “ise to fears of a broad-based property price boom.” Germans are already pointing to the ECB as the main culprit.
MADRID | By JP Marin Arrese | One day after the European Commission put Germany under close scrutiny, blaming its fat trade surplus of curtailing other countries’ growth, figures released on economic performance in the third quarter came as a nasty surprise. Exports had stalled in the biggest partner, bringing growth rate to 0.3% down from 0.7% three months before. Resilience in internal demand had saved it from shrinking, openly contradicting Brussels’ claims against Berlin.
THE CORNER TEAM | Madrid and Dublin celebrated cutting their bailout umbilical cord on Thursday, renouncing to extend the aid after their aid programmes will end. This means they will be able to enjoy economic, budgetary and funding conditions like most other sovereign countries. To finally fund themselves normally on the markets, without paying an extra penalty. However, there is still homework to do: in the case of Spain, the country needs restructuring its local savings banks.