Tag Archives: Eurozone

America’s fragile recovery: A year of living pigheadedly | The Economist

America’s fragile recovery: A year of living pigheadedly | The Economist.

America’s fragile recovery

A year of living pigheadedly

America will be a tad cheerier than Europe in 2012—but it should be so much better still

Leave a comment

Filed under dysfunction, economy, government, politicians, politics, unemployment, USA

Euro Deal is a Pill, but Experts Doubt It Is a Cure – NYTimes.com

Euro Deal is a Pill, but Experts Doubt It Is a Cure – NYTimes.com.

News Analysis

Chronic Pain for the Euro

VIENNA — The deal on Friday in Brussels to reformulate the rules of the euro zone has probably saved the shared currency for now — but there may be less to it than meets the eye.

At least four major issues still need to be resolved: how much money is needed to protect Italy now from speculative attack; whether banks will stumble because of the crisis; the isolation of Britain, which does not belong to the euro zone; and not least, whether the Brussels cure, prescribed by Germany, fits the disease.

[…]

Read the full story here: The New York Times

Leave a comment

Filed under Euro crisis, European Union

EU treaty: Britain wanted a deal – not a row – in Brussels – Telegraph

EU treaty: Britain wanted a deal – not a row – in Brussels – Telegraph.

EU treaty: Britain wanted a deal – not a row – in Brussels

The Foreign Secretary sets out why David Cameron was right to refuse to sign up to a deal in Brussels last week.

9:00PM GMT 10 Dec 2011

t is the duty of every Prime Minister to put the national interest first, even if it means sacrificing quick applause back home or refusing to please his peers in other countries. Not every Prime Minister passes that test but in the small hours of Friday in Brussels David Cameron again showed that he does. No matter how late the hour nor the pressure he is under he will do the right thing for Britain.

The eurozone crisis is having a chilling effect on our economy, our European neighbours’ economies and the world economy. It is in our interests to see it resolved as soon as possible. We support the eurozone countries in their efforts to resolve the crisis.

Obviously, crucial to that is finding a sustainable solution to Greece‘s difficulties, recapitalising the eurozone’s banks properly and convincing the markets with a credible firewall. The eurozone’s foremost countries have come to the view that eurozone countries also need stricter control over their budgets. That is understandable and may well be necessary but it is a considerable loss of national sovereignty that has profound implications for their national democracies. Decisions on national budgets will no longer be decided in eurozone national parliaments but become a matter of shared decision-making by eurozone governments.

[…]

Read the full story here: The Daily Telegraph

Leave a comment

Filed under Britain, Euro crisis, European Union

BBC News – Jacques Delors: Euro was flawed from beginning

BBC News – Jacques Delors: Euro was flawed from beginning.

Jacques Delors: Euro was flawed from beginning

One of the main architects of the single European currency, Jacques Delors, has said the eurozone was flawed from the beginning.

He told Britain’s Daily Telegraph that the lack of central powers to co-ordinate economic policies allowed some members to run up unsustainable debt.

As head of the European Commission from 1985 to 1995, he played a key role in the process that launched the euro.

The comments come amid growing doubts over the viability of the eurozone.

In his interview with the Daily Telegraph, Mr Delors says the debt crisis stems not from the idea of a single currency itself, but from “a fault in execution” by political leaders who oversaw its launch

[…]

Read the full story here: BBC News

Leave a comment

Filed under Euro crisis, European Union

Eurozone leaders duck all the big issues – Telegraph

Eurozone leaders duck all the big issues – Telegraph.

Eurozone leaders duck all the big issues

The EU treaty agreement reached by eurozone leaders last week isolated Britain and proposed a new ‘fiscal compact’, but in reality it looks like just a ‘lousy compromise’.

If in doubt, ask a bookmaker. So much noise has accompanied the latest EU crisis summit that it’s easy to miss the main point. Is a eurozone break-up now more or less likely?

Prior to the bad-tempered Brussels meeting, William Hill had priced up the collapse of the eurozone before 2013 at 3/1. The odds post the summit? Also 3/1.

[…]

Read the full story here: The Daily Telegraph

Leave a comment

Filed under Britain, Euro crisis, European Union

A second Great Depression: Eight drastic policy measures necessary to prevent global economic collapse. – By Nouriel Roubini – Slate Magazine

A second Great Depression: Eight drastic policy measures necessary to prevent global economic collapse. – By Nouriel Roubini – Slate Magazine.

How To Prevent a Depression

Eight drastic policy measures necessary to prevent global economic collapse. None of them will be popular.

The latest economic data suggest that recession is returning to most advanced economies, with financial markets now reaching levels of stress unseen since the collapse of Lehman Bros. in 2008. The risks of an economic and financial crisis even worse than the previous one—now involving not just the private sector, but also near-insolvent governments—are significant. So, what can be done to minimize the fallout of another economic contraction and prevent a deeper depression and financial meltdown?

[…]

Because these options cannot work, the sole alternative is an exit from the Eurozone by Greece and some other current members. Only a return to a national currency—and a sharp depreciation of that currency—can restore competitiveness and growth.

[…]

Read the full story here: Slate Magazine

Leave a comment

Filed under Euro crisis, European Union

The euro crisis will give Germany the empire it’s always dreamed of – Telegraph Blogs

The euro crisis will give Germany the empire it’s always dreamed of – Telegraph Blogs.

Peter Oborne
Peter Oborne is the Daily Telegraph‘s chief political commentator.

The euro crisis will give Germany the empire it’s always dreamed of

By Peter Oborne

Last updated: July 21st, 2011

Many of the biggest losers from the Wall Street Crash were not those greedy speculators who bought at the very top of the market. There was also a category of investor who recognised that stocks had become badly overvalued, sold their shares in the summer or autumn of 1928, then waited patiently as the market surged onwards to ever more improbable highs.

When the crash came in October 1929, they felt thoroughly vindicated, and waited for the dust to settle. The following spring, when share prices had consolidated at around a third lower than the all-time high reached the previous year, they reinvested the family savings, probably feeling a bit smug. Then, on April 17, 1930, the market embarked on a second and even more shattering period of decline, by the end of which shares were worth barely 10 per cent of their value at their peak. Those prudent investors who had seen the Wall Street Crash coming were wiped out.

There was one crucial message from yesterday’s shambolic and panicky eurozone summit: today’s predicament contains terrifying parallels with the situation that prevailed 80 years ago, although the problem lies (at this stage, at least) with the debt rather than the equity markets.

[…]

Read the full story here: The Daily Telegraph

1 Comment

Filed under Britain, broadsheets, European Union, Germany, Media, news & comments, notes and musings from a small island, politics, tabloids