Germany – Page 4 – Slugger O'Toole

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 …

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: 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 …

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 …

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 …

Van Rompuy: “Europe is still sexy…”

Pete Baker on July 5, 2011, 10:54 pm

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So sayeth the President of the European Council, Herman Van Rompuy, as the BBC Europe editor Gavin Hewitt notes Europe’s leaders are unsettled, scratchy. Old certainties have given way to anxiety. The open road to ever closer union is now strewn with boulders. You can gauge the ebbing confidence from remarks that didn’t need to be made. “Europe is still sexy,” declared President of the European Council Herman Van Rompuy. “As long as a club attracts new members,” he added, “it is …

Jean-Claude Juncker: “The sovereignty of Greece will be massively limited.”

Pete Baker on July 4, 2011, 9:01 pm

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After the Greek parliament voted to give everyone more time to come up with a better solution, Eurozone finance ministers agreed to release the promised €12billion to Greece to avoid an immediate default. But those same finance ministers have now delayed discussions on the details of a second bail-out for Greece, thought to be around 120bn euros, needed to pay the bills until the end of 2014. According to an Irish Times report today, the Greek finance minister Evangelos Venizelos has stated, “Euro Group decided through a …

Euro crisis: “gaining time is the least bad outcome, both for Greece and Europe as a whole”

Pete Baker on June 29, 2011, 5:06 pm

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In the midst of a 48 hour general strike, and with police clashing with protestors on the streets, the Greek Prime Minister, George Papandreou, won the first of two crucial votes on the latest package of tax hikes, spending cuts, and privatisations. By 155 votes to 138. But as the BBC Europe editor, Gavin Hewitt, wrote before today’s vote But here’s the thing. No one in Greece believes the tax increases, lay-offs, privatisations will ever be fully implemented. This morning I …

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 …

Euro crisis: “an existential crisis for the euro zone”

Pete Baker on June 20, 2011, 3:50 pm

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Eurozone finance ministers have withheld the release of a €12 billion loan to Greece in the hope that the Greek Prime Minister, George Papandreou, can secure a domestic political consensus. The BBC report quotes from the EU finance ministers’ statement A statement issued by the ministers called on all political parties in Greece to: “support the programme’s main objectives and key policy measures to ensure a rigorous and expeditious implementation”. “Given the length, magnitude and nature of required reforms in Greece, national unity …

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: “If fiscal union is not on the cards, the only other option is eurozone breakup”

Pete Baker on June 13, 2011, 3:35 pm

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In the Irish Times, Dan O’Brien provides a bleak assessment of the Greek problem at the heart of the current euro crisis. From the Irish Times article The chances of things getting worse are high. Societal strains and rampant corruption do not in themselves cause economic weakness – just look at China and India – but they don’t help. Alas for Greece, even if both problems were to disappear tomorrow there is little reason to believe its economic rot would stop. …

Euro crisis: “it is the fear of the unknown that is holding sway”

Pete Baker on June 8, 2011, 4:46 pm

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Frau Bundeskanzerlin has been to Washington, to pick up her Presidential Medal of Freedom. And to smooth over the ruffled feathers of that transatlantic relationship. As he handed over the medal, US President Barack Obama warned of the danger of the Euro debt crisis impacting the global economy, and in particular, the US economy. He might be looking for a handy scapegoat in the months ahead… But as, still everyone’s hero, Robert Peston points out “America’s banks would seem to have a good …

Euro crisis: “categorically there will be absolutely no bailout next year in Ireland”

Pete Baker on May 30, 2011, 4:44 pm

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A series of Irish government ministers have been clarifying their position after the Minister for Transport, Leo Varadkar, appeared to suggest that a second bail-out could be required for Ireland next year. Minister for Finance Michael Noonan “The programme is due to run until the end of 2013 and the start of 2014 and there is sufficient money in the programme to meet all eventualities so categorically there will be absolutely no bailout next year in Ireland,” Mr Noonan stated. “The …

Euro crisis: “Politicians have become sheep, not leaders”

Pete Baker on May 28, 2011, 5:05 pm

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In today’s Irish Times Paul Gillespie returns to the topic of the political dynamics in play at European and national levels during this euro crisis. From the Irish Times article Ireland is doubly unlucky. Not only is France prepared to play hardball, but there is also no good reason for it to calculate its interests are being damaged by Ireland’s corporation tax rate to any real extent. It is impossible to get a good explanation from any French person as …