MADRID | By Luis Arroyo | Yanis Varoufakis is the most critical economist regarding the institutional failures of the monetary union. He considers that the European Banking Union will only benefit EU Northern countries, and adds that the basic principles of the euro zone have not been entirely followed.
LONDON | By Barclays analysts | Several data releases over the past few days confirm that the Spanish economy has left behind a very long recession. The data confirm our view of a very gradual recovery in economic activity starting in Q3 2013 (seeEuropean Economics Quarterly, October 2013, for details). The economy grew at +0.1% q/q in Q3 13 after nine consecutive quarters of negative prints.
SAO PAULO | By Marcus Nunes | A depressing quote: “A deeper, more worrying explanation is that Europe does not have a strong desire for growth. In fact, some have become convinced that, given the environmental consequences, economic growth does more harm than good and that the crisis should be regarded as an opportunity to shift to a more frugal economy.The growth agenda, according to this view, is a Trojan horse for ecological neglect – for example, through more business-friendly environmental regulation or shale-gas exploration.” (By French government’s Commissioner General for Policy Planning Jean Pisani-Ferry).
FRANKFORT | Der Standard via Presseurop | Major European banks are paying dearly for their alleged participation in the manipulation of interest and exchange rates.
MADRID | By Fernando G Urbaneja | Jeroen Dijsselbloem is happy because Spain is doing its homework, but he warns that there is still a lot to do. “Working harder and longer” is his motto, although he doesn’t seem to know how eager the Spanish unemployed are to find a job. And extending the age of retirement doesn’t look like the best option.
BRUSSELS | By Suzanne Lynch at The Irish Times via Presseurop | Ireland may choose to exit its bailout programme without the support of a precautionary credit line, the Minister for Finance said yesterday following a meeting with the International Monetary Fund in Washington.
PARIS | By La Croix via Presseurop | “There is growing wind of revolt against the government’s fiscal policy,” explains La Croix in the wake of a weekend of violent demonstrations in Brittany agains the ecotaxe, a new environmental tax on road transport.
MADRID | By JP Marin Arrese | Draghi’s acid comment that a number of banks had to fail the forthcoming ECB asset quality and stress tests to ensure their credibility, sounded like a warning on his resoluteness to undertake an unsparing check before taking over full supervisory powers. His scaremongering statement has being judged as wholly inappropriate for a central banker. A position he is well acquainted with.
LONDON | By The Economist via Presseurop | It’s not just sovereign borrowing; there are too many zombie firms and overindebted households.
MADRID| By Francisco López |The European Central Bank published on Wednesday some of the criteria to evaluate financial entities’ solvency, as a previous step before it takes on competences as a single banking supervisor. Balances of 128 European banks will be tested from November to October 2014. And new rules are stricter than expected.