ECB – Page 2 – Slugger O'Toole

Euro crisis: “even though we know how difficult a treaty change will be”

Pete Baker on September 3, 2011, 9:19 pm

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Whilst the Eurogroup continues working “on a proposal”, there are some other snippets to note. The IMF has announced it is releasing almost €1.5billion to Ireland as part of the EU-IMF financial aid package for the country. Apparently the Irish government has maintained “resolute implementation” of the economic restructuring programme, and is “ahead of schedule in some areas”. Not so Greece. The Irish Times’ Arthur Beesley informs us that the EU-IMF inspectors have “unexpectedly left Greece yesterday after the emergence of divisions …

ESRI urges Noonan to put more money aside against coming economic Winter..

Mick Fealty on September 1, 2011, 2:06 pm

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The ESRI, one of the most authoritative think tanks in the Republic, recommends in its Quartely Report that the Minister of Finance, Michael Noonan should frontload more than the €3.6bn recommended by the EU/ECB/IMF plan in the next budget, by up to €400ml. One objective seems to be encouraging investor interest, which has been cautiously improving this year at a time when both the US and UK economies are weakening by, as Joe Durkan said on Morning Ireland this morning, …

Euro crisis: “When preserving the status quo is no longer a viable option…”

Pete Baker on August 13, 2011, 2:40 pm

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The Italian government is facing internal dissent over the terms and conditions of the European Central Bank’s “sticking plaster”. Meanwhile, in the Irish Times, another supporter of the “European Project”, Thomas Klau, referencing the recent FT article by Otmar Issing I mentioned, at least identifies the fundamental area for discussion. In the English-language debate particularly, the relationship between democracy and European integration is often most vigorously argued about by Eurosceptics. It is essential for advocates of deeper European integration not …

Euro crisis: Back from the brink?

Pete Baker on July 22, 2011, 7:20 pm

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Well, perhaps… Eurozone leaders emerged from their emergency summit yesterday offering a new €109billion bail-out for Greece with twice as long to pay it back [30 years] at a lower interest rate than before. It’s a “restricted default event”, according to ratings agency Fitch. The draft agreement in full is here [pdf file]. Ireland and Portugal get an interest rate cut too – Karl Whelan’s busy at Irish Economy calculating what it means for Ireland. But the private sector involvement in Greece …

Euro crisis: “everything those leaders have done, after large amounts of dithering, has ended up making the situation worse.”

Pete Baker on July 19, 2011, 7:48 pm

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That’s the BBC economics editor Stephanie Flanders quoted above, by the way. Which brings me back to Thursday’s emergency summit called by European Council president, Herman Van Rompuy “Our agenda will be the financial stability of the euro area as a whole and the future financing of the Greek programme,” said Mr Van Rompuy in a brief statement last night. [Friday 15th July] Perhaps… But Frau Bundeskanzlerin, who reportedly wasn’t as keen on the summit being called, has been playing down expectations …

Jean-Claude Trichet: “It is not a question of technique. It is a question of will and determination.”

Pete Baker on July 18, 2011, 9:11 pm

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At the Telegraph blog, Andrew Lilico takes his life in his hands to ask, “Is it time for the eurozone to turn into a Single European State?” A key point he makes, I’d suggest OK – so what do we do, if we don’t want to break up the euro altogether? First, we have to accept (a) that this is fundamentally a political project, a precursor to a Single European State, and must be accepted as such by all its …

Bini Smaghi: “The crisis has shown that the euro is an incomplete construct and needs to be completed.”

Pete Baker on July 10, 2011, 5:55 pm

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Via the Irish Economy blog. In a speech at the 8th European Seminar in Poros, on 8th July, Lorenzo Bini Smaghi, Member of the Executive Board of the ECB, did a reasonable job of identifying the problems highlighted by the sovereign debt crisis – although he denies it’s an existential crisis for the EU. But, as a true believer in the “European Project”, his solution may not be to everyone’s taste… From his 8th July speech In my view, we should strengthen …

Euro crisis: Come on in, the water’s lovely…

Pete Baker on June 24, 2011, 9:12 pm

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Croatia got an invite to join the European Union party, as EU leaders cornered the under pressure Greek Prime Minister, George Papandreou, ahead of next week’s crucial Greek parliamentary vote on the latest bail-out. Arthur Beesley in the Irish Times FOR THE fourth time this year, EU leaders gathered in Brussels last night to plot the next step in the sovereign debt emergency. They have declared victory many times before. None is inclined to suggest they are winning now. The mood …

Sarkozy: “Without the euro there is no Europe…”

Pete Baker on June 18, 2011, 3:43 pm

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That was the exaggarated claim of French President Nicolas Sarkozy as Frau Bundeskanzerlin blinked over her demand that private bondholders be made to share the burden of a ‘Greek miracle’ second Greek bail-out. Although where that leaves the Bundestag is another matter… And now that the French and German leaders are in agreement it’s down to the Greek Prime Minister George Papandreou to forge a domestic political consensus. Or not. A new political contract is essential for Greece to survive the current crisis. For this contract …

Euro crisis: “the right to veto some national economic policy decisions”

Pete Baker on June 3, 2011, 3:19 pm

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Further signs of dissent in Greece at the proposed terms of a new improved bail-out, and the accompanying “humiliating erosion of sovereignty”. And so far, where Greece has been led, others have followed… But, for some, every cloud has a silver lining. “Would it go too far if we envisaged . . . giving euro area authorities a much deeper and authoritative, say in the formation of the country’s economic policies if these go harmfully astray?” asked [European Central Bank president, Jean-Claude …

Euro crisis: “For all concerned, the stakes are rising rapidly”

Pete Baker on May 31, 2011, 5:21 pm

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The markets may be optimistic about reports of agreement between Greece and the EU, IMF and ECB inspectors but, as Arthur Beesley notes in the Irish Times, the cost will be “a humiliating erosion of sovereignty”. And, as he also notes in a separate report, the future remains uncertain for Greece. In view of Greece’s uncertain financing outlook over the next 12 months, the IMF is known to be threatening to refuse to release its €3 billion portion of the €12 …

Euro crisis: “everyone thought everyone else would back down at the last minute…”

Pete Baker on May 25, 2011, 7:30 pm

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Writing in the Guardian, Paul Mason covers similar territory to my post last night [But in a more coherent manner? – Ed]. You might very well think that… ANYhoo… He opens with this In the summer of 1914 the Austrian novelist Stefan Zweig was on holiday in Ostend with fellow writers and artists. One afternoon, noticing the sudden appearance of uniformed soldiers on the promenade, they buttonholed an officer: “Why all this stupid marching around?” It was 3 August: war was …

Euro crisis: “Europe has been producing its usual cacophony of voices in the past few days”

Pete Baker on May 24, 2011, 9:20 pm

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BBC Europe editor, Gavin Hewitt, has been looking at Spain in the aftermath of defeat for the prime minister José Luis Rodríguez Zapatero’s ruling socialist party in municipal and regional elections. From Gavin Hewitt But nerves are back. In weekend elections the governing Socialist party took a thrashing. Even in strongholds like Seville and Castilla-La Mancha it was defeated. There is a pattern emerging in Europe. Given a chance, the people turn on the incumbents. In Spain national elections do not …

Euro crisis: “When it becomes serious, you have to lie.”?

Pete Baker on May 19, 2011, 3:55 pm

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Another article, to add to those noted by Mick, on the wider economic and political considerations being argued in the eurozone. At the Guardian, Nuno Monteiro and Eduardo Sousa warn While a growing number of analysts recognise the likelihood of sovereign-debt defaults across Europe’s periphery in the next few years, the continent’s political and financial elites continue to see restructuring as the third rail of financial options. Despite all signs that the euro may be set on an implosion course, the EU …

Was Brian Lenihan pushed or did he jump because he had nowhere left to go??

Mick Fealty on April 26, 2011, 3:57 pm

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There was a lot of copy written both before and after the BBC documentary, the Bail Out Boys come to Dublin compiled by the Irish Times’ writer, Dan O’Brien. But listening to it there are a few accounts in that programme that seem to conflict with Mr Lenihan’s headline grabbing, not to mention rather simplifying suggestion that the measures were not necessary and the ECB forced him (not to mention the rest of the country) into taking the money. It …

Euro crisis: “The Government is due to consider a potential programme of asset disposals…”

Pete Baker on April 16, 2011, 4:30 pm

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Greece were the first of the PIGS to request a EU-IMF bail-out – with the threat of contagion, as Mack’s timeline records, leading to the construction of a wider mechanism which Ireland, eventually, availed of. The result, according to ECB executive Lorenzo Bini Smaghi, of the “choice of economic model” by “successive governments, and their voters”. As Tim Garton Ash commented at the time, “The crisis of the eurozone has only just begun.” A year on and, as BBC Europe editor Gavin Hewitt noted …

…an Irish solution to an Irish (sic) problem…

John Ó Néill on April 16, 2011, 12:14 am

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Sporting the cuddly-ish name of the ‘Troika’, the IMF, ECB and European Commission were in Dublin making sure that taxpayers in Ireland pay for the socialised debts of, amongst others, German and French banks who made poorly judged loans to Irish banks. Troika frontman, of sorts, Ajai Chopra, gave his approval of the current arrangements. It represents an Irish solution to an Irish problem and it enjoys our support. If Mr Chopra isn’t taking the proverbial, his Troika colleague Istvan Szekely (EC director …

“The net point is that Ireland’s lenders retain all the power…”

Pete Baker on April 1, 2011, 9:01 pm

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With tensions rising across Europe, in the Irish Times Arthur Beesley maps out the territory as the Irish Government prepares to attempt to tentatively restart the debate on reducing Ireland’s bail-out interest rate. As noted previously, Arthur Beesley has highlighted some of this territory before The Government’s position is not at all strong, so repeated claims that the situation is now so grave as to merit pursuing senior bonds serves to emphasise the requirement for something else to ease the pain. Important …

“Corporation tax is now mentioned as a quid pro quo”

Pete Baker on March 12, 2011, 1:15 pm

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Encouraging noises are one thing, but at the first EU late nighter of Taoiseach Enda Kenny’s tenure the BBC reports some possibly premature tweeting from EU President Herman Van Rompuy. In a message on Twitter, Mr Van Rompuy had initially said: “We have an agreement on the Pact for Euro.” The message was later amended to: “Update from ongoing meeting: Agreement in principle on the Pact for the Euro, but still discussing the other elements of the package.” A pact would …

Euro crisis: “Expect some late nights.”

Pete Baker on March 8, 2011, 11:35 pm

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More encouraging noises for the incoming Taoiseach from the European Union’s economic and monetary affairs commissioner, Olli Rehn. As the Irish Times reports “I can see that there is a case to reduce the interest rates paid by Greece and Ireland,” the commissioner said. “In that context, it is important that we also look at loan maturities so that we can go beyond the hump of 2014 and 2015 and that also contributes to debt sustainability . . . The essential …