Mr Draghi, governor at the European Central Bank, should listen to his American colleague at the Federal Reserve. And follow suit by means of expnasionary monetary policies even if inflation reaches 4 percent.
Don’t expect a single penny to be spent on banking restructuring processes for a long time to come, a nasty prospect for neighbours anxiously awaiting the common supervision agreement to clean up their messy financial industry.
LONDON | As 2012 finishes, the first accounts from the City of what the year was like bring doses of optimism. The euro zone will polish its banking and fiscal union, and Greece will stay within, analysts forecast to investors.
MADRID | European Central Bank governor Mario Draghi may retain more power than presidents and Economy ministers of the euro area country members, but does he has the same insight? Not at all. The entire EU is condemned to recession.
MADRID | Germany has made clear to its partners they must lose all hope about increasing financial solidarity in a foreseeable future. Eurobonds and funds to prevent external shocks are to be shelved for the time being.
By CaixaBank | To restore the flow of credit to the real economy in Spain, it’s crucial for the bank restructuring process to be successfully completed over the coming months.
BARCELONA | CaixaBank | The adjustment in employment during the crisis has been more intense in those countries with a real estate bubble. Leading indicators point to further job losses.
Institutional investors may be getting their hands in higher-yield sovereign bonds to increase their results, but there are some financial reports of improving macroeconomics for the euro zone.
Spanish president Mariano Rajoy’s reluctance is more than understandable because there is no assurances about the reach of the OMT operations, nor their effects. Moreover, Brussels has recanted more than once, already.
How will the Greek debt be reduced to bearable levels? There are only two simple solutions. Either Interest payments for the outstanding public debt should be paused for a period of 5 years, or the ECB directly funds any financial needs Greece has.