European Central Bank

ECB night

ECB more hawkish: risk of over-tightening seems overshadowed by risk of doing too little

On Monday we once again had statements from ECB council members after last week’s appearances following last week’s meeting. There are few novelties, except for the reaffirmation of similar broad movements for March. According to Committee member Robert Holzmann, inflation must be actively combatted until the citizens of the Eurozone feel that price stability is part of their daily lives. Holzmann did make an interesting point in explaining that the…

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Mr Draghi disagrees with the world

MADRID | Will the ECB finally U-turn or would it sit as a quiet spectator while the US Federal Reserve and the Bank of Japan intervene with massive liquidity injections against the credit crunch?

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Draghi’s inconceivable cynicism

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.

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Spain’s main political parties come together against the European rescue option

By Julia Pastor, in Madrid | Contrary to what might be assumed, on Wednesday Spanish politics answer to the EU was strong despite the severe turbulences affecting the country’s financial system: the argument is that it does not need to rescued, but its debt needs to be guaranteed. President Mariano Rajoy and the opposition leader, the Socialist Alfredo Pérez Rubalcaba, agreed to hold this position together in order to “defend the…


Fixed income investors favour option of ECB buying Italian, Spanish bonds

LONDON | Barclays Capital asked 80 of their fixed income clients about what the European Central Bank should do to calm markets down and deflate the ever more acute euro crisis. Investors from outside the euro zone said the central bank’s best chance would be to return to the markets to buy sovereign debt from Italy and Spain, cut interest rates and inject long-term liquidity into the banking system, but…

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Weekend read | De Guindos: Spain has a plan [video]

His message was clear, no frills: “We are paying the consequences of Germany and France breaking the Fiscal Pact in 2003,” stated Spain’s economy minister Luis de Guindos on Friday at the Brookings Institution think tank in Washington. In his first official visit to the US, Mr De Guindos tried to spur US confidence, explaining the key points of financial and labour reforms in Spain. “Europe and Spain’s main problem…