eurozone – Page 6 – Slugger O'Toole

Taoiseach on euro crisis: “I think we have to get on with what we have now…”

Pete Baker on September 30, 2011, 7:03 pm

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Oh dear… RTÉ reports Taoiseach Enda Kenny sticking his head in the sand insisting that the status quo is perfectly adequate to deal with the eurozone crisis. Speaking in Warsaw, Mr Kenny admitted there had been a lot of discussion among eurozone leaders about where the crisis was headed, and that there would be a good deal more discussion before heads of government meet in mid October. When asked if he supports Treaty change in order to facilitate a deeper …

Frau Bundeskanzlerin calls for coercive powers (aka a nascent transfer union)…

Mick Fealty on September 27, 2011, 11:37 am

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Just been sent a translation of an interview given on German TV by the Frau Bundeskanzlerin, aka Angela Merkel: “The Chancellor sees no alternative to the euro and calls again, on Gunther Jauch”s show, for a commitment to the stabilisation of Greece. Regarding the debt-crisis, Merkel very clearly demanded a strengthening of the stabilisation-responsibilities. For this purpose, she said, “there must be a mechanism, for the future, giving the right to intervene and coerce.” “We must work,” she went on,”for …

Euro crisis: As seen by…

Pete Baker on September 16, 2011, 1:54 pm

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I’m not sure where he found it, but Philip Lane has posted this amusing graphic at the Irish Economy blog as the EU’s existential crisis continues. Heh. Pete Baker

Euro crisis: “It is a debt crisis but a crisis, too, of legitimacy.”

Pete Baker on September 14, 2011, 3:43 pm

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Credit ratings agency Moody’s has downgraded two major French banks ahead of crisis talks between President Nicolas Sarkozy, German Chancellor Angela Merkel, and Greek Prime Minister, George Papandreou. BBC business editor, and still everyone’s hero, Robert Peston explains why. And Greece isn’t their only concern. Nor are they the only ones taking an interest. [Adds – More on the interest elsewhere]. The Guardian’s business blog is live-blogging today’s events… And, even though they “know how difficult a treaty change will be”, that’s precisely what …

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 …

Jean-Claude Juncker: “The Eurogroup is working on a proposal, which I hope all eurozone member states will be happy with”

Pete Baker on August 29, 2011, 9:15 pm

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A quick update from Brussels on the crisis in the euro-zone where Finland’s demand for collateral in return for financial aid to Greece is, as the New York Times reported, threatening the “fragile consensus”. [Offer them an island or two! – Ed] I don’t think that would cover it… The BBC reports that European Central Bank (ECB) president, Jean-Claude Trichet, wants European governments to get back to work quickly. “The full and timely implementation of the July 21 agreement between heads …

Sarkozy: “We have to converge. The status quo is impossible.”

Pete Baker on August 17, 2011, 4:35 pm

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Frau Bundeskanzlerin and the French President, Nicolas Sarkozy, emerged from their bunker yesterday to call for “true economic governance” for the eurozone. As Derek Scally reports in the Irish Times Mr Sarkozy and Chancellor Angela Merkel presented joint proposals for further reforms and euro zone integration after meeting in Paris yesterday, calling them essential steps to end ongoing instability. “To strengthen the euro as our common currency, it is clear that we will need a closer interlocking of economic and financial …

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 …

Eurosceptic front-runner in race for the Áras

Pete Baker on August 11, 2011, 3:17 pm

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In the absence of independent Senator David Norris, the former Late Late Show presenter, and current chairman of the Ireland’s Road Safety Authority, Gay Byrne, is reported to be polling ahead of all the declared candidates for Irish President. And he’s been holding forth on his concerns about the European Union. “Those concerns are that I think it’s a crazy notion from the very beginning. We crossed the Rubicon when we joined the single currency. I think there’s no backing out now …

Euro crisis: “Slithering to the wrong kind of union”

Pete Baker on August 9, 2011, 2:51 pm

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A number of people point to the warning by Otmar Issing in the Financial Times that the measures eurozone leaders have agreed in response to the continuing euro debt crisis “is not a move in the direction of a true political union. It is a dangerous step, and one which will end up dividing Europe.” From the FT article The idea that a new European process to transfer taxpayers’ money that is neither democratic nor governed by principles that support fiscal solidity would …

Euro crisis: “Que Sera Sera…”

Pete Baker on August 8, 2011, 5:21 pm

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The European Central Bank’s “sticking plaster” appears to have had the desired effect of alleviating pressure on Spanish and Italian government bonds. For now. As BBC business editor, and still everyone’s hero, Robert Peston, observes It would have been utterly disastrous if there had been any other outcome. Because – for the avoidance of any doubt – the ECB is taking a substantial reputational and financial risk in buying the debt of these nations: many will see the ECB as …

Euro crisis: “The euro area crisis has reached end game…”

Pete Baker on August 3, 2011, 2:38 pm

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The Italian finance minister, Giulio Tremonti, has held crisis talks with Jean-Claude Juncker, chair of the Eurogroup of finance ministers. The Spanish Prime Minister, Jose Luis Zapatero, “has postponed the start of his holidays” to keep “an eye on the international economic situation.” Both countries’ bond yields have reached their highest rates in 14 years, and are considered to be at unsustainable levels. As the Guardian reports, the stock markets have taken fright “as fears grew over the health of the global …

Euro crisis: “this is not a crisis about the euro”

Pete Baker on July 31, 2011, 5:45 pm

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So sayeth the President of the European Council, Herman Van Rompuy, writing in the Guardian. And he should know! From the Guardian article Astonishingly, since our summit the cost of borrowing has increased again for a number of euro area countries. I say astonishingly, because all macro economic fundamentals point in the opposite direction. It cannot be stressed enough that Greece is in a unique situation, not comparable to that of the other eurozone countries. Italy will generate a primary …

Euro crisis: Just when you thought you were out…

Pete Baker on July 29, 2011, 3:41 pm

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Signs, perhaps, that the markets remain less than convinced about last week’s eurozone leaders’ agreement on debt. Yesterday Italy was forced to pay more to borrow than just one month ago. Credit agency Moody’s has warned it may downgrade Spain’s rating. All three credit agencies have a negative outlook on the country’s rating as the Spanish prime minister Jose Zapatero calls an early general election. And, in Cyprus, where the credit rating was downgraded by 2 points on Wednesday by Moody’s, …

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 …

Barroso: “Nobody should be under any illusion: the situation is very serious”

Pete Baker on July 20, 2011, 5:14 pm

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Everyone’s got something to say ahead of tomorrow’s emergency EU summit on the existential European debt crisis. Whether you believe any of them is another matter entirely… Taoiseach Enda Kenny is echoing Frau Bundeskanzlerin. Taoiseach Enda Kenny has said he is also hopeful that Ireland will be on the agenda at tomorrow’s meeting. However, in a statement issued today, Mr Kenny said he did not believe the meeting would solve all of the euro zone’s problems. “The crisis in the euro area …

Greek crisis is European because Europe has consciously chosen to make it one

Mick Fealty on July 20, 2011, 4:01 pm

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Those of you who have been following Pete’s work on the Euro crisis ought to find this analysis from John Kay familiar: The crisis in Greece – and Ireland and Portugal and perhaps elsewhere – is a crisis for Europe as a whole. Not because that is the nature of a single currency, but because Europe has consciously chosen to make it one. From its inception, the guiding philosophy of the EU was that if you took every opportunity to …

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 …

Van Rompuy: “Our agenda will be the financial stability of the euro area as a whole…”

Pete Baker on July 16, 2011, 3:53 pm

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European Council President Herman Van Rompuy has called an emergency summit of divided euro zone leaders on Thursday to address the existential European debt crisis. From the Irish Times report “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. “I have asked for the preparatory work to be brought forward inter alia by the finance ministries.” And they …