European government borrowing set to fall 7pc in 2013, says Fitch
LONDON | Fitch Ratings noted that, in spite of the slow progression, European government debt volume should not worry investors in the new year.
In Europe
Danger! A radical eurozone
By Steen Jakobsen, chief economist at Saxo Bank | “The greatest danger, unless something is done, is that social tensions scale and political radicalism grows in Europe, with unemployment pushing young people against the institutions and the private sector telling the public sector that enough is enough.”
We still need a Banking Union in 2013
By Miguel Ángel Rodríguez, XTB analyst | The toxic assets aren’t just linked to real estate and construction companies, but to sovereign debt holdings, too. Which is why, without a Banking Union the whole euro nightmare will repeat itself.
How Portugal charms investors
Presseurope | by Karin Finkenzeller | Hard-hit by the crisis, Lisbon is wooing rich investors from its former colonies. Anyone who invests in the country has a good chance of obtaining a visa — and an open door to the rest of Europe.
Peripheral austerity hurts German exports
German exports provided the government with proof that the country’s economy isn’t immune to the crisis affecting the economies in the south of Europe.
Countries under Brussels’ austerity suffer extra-unemployment penalty
BRUSSELS | In November 2012, 5.799 million young persons (under 25) were unemployed in the EU, of whom 3.733 million were in the euro area.
The Irish economy’s riddle
MADRID | This year, the budget cut therapy ordered by Brussels upon the euro area’s weakest economies will have to pass an exam in Dublin. If the Irish economy burdens itself with more public debt while missing growth, the failure could make current European Union policies untenable.
Angela Merkel is the best it could have happened to Europe
AMSTERDAM | Presseurop.eu | By Melvyn Krauss | The last minute negotiations in Washington to avoid a budget shortfall show that short-termism is well grounded in US politics. And by contrast, it shows that despite her controversial handling of the euro crisis, the German chancellor is wise enough to instead push for long-term solutions.
Rajoy shouldn’t fear Spain’s diversity, but its messy economics
In the latest national opinion survey, Spaniards told the Rajoy government to close the nationalism front and weigh in with all resources to sort out the economy.
A definitive solution to the eurozone: follow the US tracks
Deficit per GDP reduction in cold blood increases the debt per GDP ratio. We have been there, already. The sensible thing to do is to finance economic growth to shorten the deficit, even if it prolongs for a certain period the increase of debt.