ATHENS | By Jens Bastian via The Agora | Despite the successful recapitalisation process and continued restructuring of the Greek banking sector, the credit transmission mechanism towards the real economy remains severely impaired. [Above graph sources: The Agora and Bank of Greece yearly data.]
MADRID | By Francisco López | The market has changed their perception about the ECB’s monetary policy and it’s now anticipating a possible reduction of interest rates in the eurozone before end of the year or early 2014. The first consequence has been the depreciation of the euro, which has gone from 1.38 dollars, a two-year-maximum, to 1.35. The European currency suddenly depreciated, yet it still overvalued against the dollar.
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 | Euro area industrial production rose significantly by 1.0% m/m in August, broadly in line with our expectations (+0.9% m/m, consensus: +0.8% m/m). This increase offset the drop recorded in July entirely.
MILAN| By Fabrizio Goria via Presseurop | Although German Chancellor Angela Merkel seems assured of victory, the German elections will be revelatory. The results should bring answers to a number of open questions concerning the future of the economy and of European institutions.
BRUSSELS | By commissioner Olli Rehn | ‘Yes, this slightly more positive data is welcome – but there is no room for any complacency whatsoever. I hope there will be no premature, self-congratulatory statements suggesting “the crisis is over”.’
LONDON | By Victor Jimenez | In a cautious tone common to other voices heard today in the City, analysts reminded investors that most governments in Europe continue amassing public spending bills worryingly higher than their income.
MADRID | Since the start of the financial crisis in 2008, the Spanish banks have reduced their presence in 7,925 branches or -17.2%, the equivalent of a 53.6% of the whole Eurozone’s banking sector.
MADRID | By Luis Arroyo | The economic cycle goes up and down. But after a terrible crash as the one we have suffered, following a crazy boom, amid staggering losses of capital and jobs, you would be deluded to believe that the economy will fix itself.
MADRID | By Luis Arroyo | To really tackle the state of our economies, Brussels should admit that most countries cannot repay their debts with the current German anti-crisis plans.