Eurostat, the EU statistical service, announced late yesterday evening that in December unemployment remained at the persistently high level of 12% since October, while inflation took a new downwards turn to 0.7% in January, from 0.8% in December. It’s difficult to say which one of the two developments is more alarming. On both accounts Eurozone […]Eurozone: In vicious cycle of disinflation and unemployment?
February 1, 2014 by 1 Comment
Eurostat, the EU statistical service, announced late yesterday evening that in December unemployment remained at the persistently high level of 12% since October, while inflation took a new downwards turn to 0.7% in January, from 0.8% in December. It’s difficult to say which one of the two developments is more alarming. On both accounts Eurozone […]War of words in Davos over Eurozone’s inflation/deflation
January 27, 2014 by Leave a Comment
During the last two days, Friday and Saturday, of this year’s Davos gathering of the rich and powerful, an intense debate about Eurozone’s inflation or rather deflation, divided once again the Old Continent between Germans and…anti-Germans. Ollie Rehn, the Finn European Commission Vice-President and Commissioner responsible for finance and the euro, said that the currently […]No way out for Eurozone’s stagnating economy
January 15, 2014 by Leave a Comment
This morning the German Federal Statistical Office issued a Press release revealing that the country grew by a mere 0.4% last year. This is almost half than the 0.7% GDP increase that Germany recorded in 2012. Along the same line of developments, Eurostat, the EU statistical office, published a Press release estimating that the Eurozone […]The fatal consequences of troika’s blind austerity policy
January 10, 2014 by Leave a Comment
When the ‘troika’, made up by the European Commission, the European Central Bank and the International Monetary Fund was atypically formed first in spring of 2010 to bail out and audit Greece, its widely advertised purpose was to inflict an internal devaluation on this country. Later on the troika undertook to perform the same task […]Commission deepens criticism on German economic policies
November 14, 2013 by Leave a Comment
Yesterday, the European Commission, on the occasion of the presentation of its reports on the ‘European Semester 2014’, the “Annual Growth Survey’ and the ‘Third Alert Mechanism Report’ on macroeconomic imbalances in EU member states, seized the opportunity to deepen and elaborate on its criticism, directed against the economic policies applied by Germany. Also yesterday, […]EU Banks still get subsidies from impoverished citizens
October 22, 2013 by Leave a Comment
Five years after the melt down of the western financial system, triggered by the bankruptcy of Lehman Brothers in September 2008, and the European taxpayers still pay the price. According to European Commission’s estimates the cost of government (aka taxpayer and all citizens) support to failing banks in Eurozone reached €4.5 trillion during the first […]What do Europeans believe about the crisis and the possible way out?
October 21, 2013 by Leave a Comment
Despite the falling level of citizens’ confidence in EU institutions during the past few years from 55% in 2007 to 44% in 2012, a recent Eurobarometer survey found that respondents insist that the EU is best placed to regulate banks, with 54% of the respondents supporting this view. This is a direct proof that Europeans […]Why Eurozone can afford spending for growth
July 17, 2013 by Leave a Comment
Eurostat, the EU statistical service, confirmed once more the excellent health of Eurozone’s economy, at least as far as its international competitiveness is concerned. Low inflation and large surpluses in external trade of goods constitute a solid base for the foreign value of the single money. They also advocate in favour of further relaxation of […]Why the euro may rise with the dollar even at lower interest rates
July 8, 2013 by 1 Comment
Goldman Sachs, the US financial giant, may be right in predicting more expensive euro parities with the American dollar around 1.37 within six months, largely higher than the current levels of 1.28-1.30. The European Sting has been pointing for a long time to Eurozone’s foreign account surpluses and the standard inflows of investments into the […]Eurozone: Avoiding a new Greek accident
June 21, 2013 by Leave a Comment
The withdrawal yesterday night of the junior partner, the DHMAR (Democratic Left) political party from the Greek tripartite government coalition poses again the effectiveness problem of the overall economic strategy Eurozone applies to counter its sovereign debt sustainability problem and exit a two years old recession. The obstacles are political, social and also of economic […]Germany’s fiscal and financial self-destructive policies
June 4, 2013 by Leave a Comment
IMF Mission’s “Concluding Statement” (Article IV Consultation) on the German economy which was published yesterday, contains almost the same basic recommendations as the European Commission’s assessment aired at the Semester Press Conference in Brussels on 29 May. Both reports had references to Germany’s over stretched fiscal consolidation (meaning unneeded austerity) and the need to increase […]‘Two pack’ austerity package in force but with less vigor
May 28, 2013 by Leave a Comment
The ‘Two-Pack‘, an EU regulation package for Eurozone’s austere fiscal reform enters into force on 30th May 2013 in all euro area Member States. The new strict fiscal rules for euro area countries proved necessary, after the Stability and Growth Pact (SGP), failed to refrain budget deficits and public debt below 3% and 60% of […]Why growth is now a one way road for Eurozone
May 17, 2013 by Leave a Comment
Eurozone trade in goods with the rest of the world in March 2013 left a record surplus of €22.9 billion, according to an announcement released by Eurostat, the EU statistical service. Yet the single euro money area is stuck in a long-term recession and high unemployment trap, without visible prospects for an exit. Francois Hollande, […]Austerity lovers and ‘relaxationists’ fight over the EU budget
May 14, 2013 by 1 Comment
The efforts to reach an agreement between the three most important EU bodies, the Council, the European Parliament and the Commission over the Multiannual Financial Framework 2014-2020, for the Union’s proper spending power, will test not only the cohesion of the EU but also the abilities of the ‘austerity lovers’ to wreak their policy options. […]Eurozone plans return to growth
May 10, 2013 by Leave a Comment
After Dr Wolfgang Schaeuble, the German minister of Finance stated that it was a fair decision by Brussels to give France two more years to straighten up its fiscal accounts, the climate in Eurozone has changed from winter to spring. Up to now Paris was at odds with Berlin over the severe austerity policies imposed […]A new arrangement between Eurozone’s haves and have-nots
May 9, 2013 by Leave a Comment
The next European Council which is to take place in Brussels on Wednesday 22 May will be pivotal for the European Monetary Union (EMU), that is the Eurozone. Despite the fact that according to high-ranking Council officials there won’t be any decision on the EMU this month, there is evidence that the 17 Eurozone leaders […]Eurozone: The cycle of deficits, debts and austerity revisited
April 29, 2013 by Leave a Comment
A European Union Member State’s government budget deficit may not exceed -3 % of its gross domestic product (GDP), while its debt may not exceed 60 % of GDP. If a Member State does not respect these limits, the so-called excessive deficit procedure is triggered. The procedures against member states for excessive deficit or debt […]Why Eurozone’s problems may end in a few months
April 26, 2013 by Leave a Comment
After Manuel Barroso, President of the European Commission, questioned loudly last Monday the one-sided character of the severe austerity policies currently applied in a number of Eurozone countries, yesterday it was the turn of Commission’s vice President Ollie Rehn, directly responsible for this tough strategy, to argue openly and clearly in favour of a relaxation. […]Berlin’s governing elite leads Eurozone to recession to win the September election in Germany
April 24, 2013 by Leave a Comment
As if everything was rosy and growing in the Eurozone, the German federal ministry of Finance issued yesterday a press release demanding that everybody in the euro area continues on the same line of economic policies, targeting financial and fiscal consolidation by using severe austerity measures mainly in deficit countries. For Germany proper Eurostat found […]Which EU countries have to correct their economic policies?
April 11, 2013 by Leave a Comment
The European Commission announced yesterday that 13 member states of the EU are in the danger area of macroeconomic imbalances. The bell tolls about Bulgaria, Denmark, France, Italy, Hungary, Malta, the Netherlands, Finland, Sweden and the United Kingdom. In must be noted that the three countries (Greece, Portugal, Ireland) plus Cyprus which already apply rehabilitation […]The vicious cycle of poverty and exclusion spreads fast engulfing more children
April 4, 2013 by Leave a Comment
According to a Eurostat study on people at-risk-of-poverty or social exclusion (AROPE), the ongoing economic and financial crisis has seriously affected the relevant indicators. Eurostat is the statistical service of the European Union. AROPE is the headline indicator to monitor the EU2020 Strategy poverty target. According to Euroastat it reflects the share of the population […]The EU Spring Summit set to challenge austerity
March 15, 2013 by Leave a Comment
The “Spring Summit” of the 27 EU leaders on 14-15 March unfolding currently amidst the Brussels winter scenery, will be forced to challenge the presently followed economic policy orientation of austerity, under the pressure of major developments. Obviously the Italian elections results and the ensuing political stalemate, set a new background for every political economy exercise […]Parliament ready to fight for a different EU budget
March 14, 2013 by Leave a Comment
Last Tuesday 12 March, when the President of the European Council, Herman Van Rompuy, was addressing an invitation letter to the 27 EU leaders for the spring EU Summit of today and tomorrow, he couldn’t know the alarming outcome of European Parliament vote on the austerity EU Budget.This draft Budget features a deficit for the […]Hollande decisively rebuffs Merkel’s and Rehn’s austerity policies
March 13, 2013 by Leave a Comment
European Commissioner Ollie Rehn, of Finnish origin (not finished, at least not yet), who has become the EU’s champion of austerity, will find it increasingly difficult to defend his Castle of Miser over the coming months. Yesterday, speaking in an interview to a daily newspaper of his country (on demand?), he playfully unleashed thunders against […]The Italian crisis may act as a catalyst for less austerity
February 28, 2013 by Leave a Comment
The Italian political stalemate which threatens the financial stability of this country and risks to shake the Eurozone through the contagion effect, has not prompted Germany to relax its tough position vis-à-vis the euro area debt crisis and the severe austerity measures favoured by Berlin. As a matter of fact, Wolfgang Schaeuble, the German minister […]Banks suffocate the real economy by denying loans
January 29, 2013 by Leave a Comment
Yesterday the European Central Bank released data on Eurozone bank deposits and loans for December 2012. According to this report deposits by households and the non financial business sector increased during 2012 by at least 4%, while the loans to private sector (non-financial businesses and households) continued to decrease. The diverging direction of increasing […]Banks get new capital for free and citizens pay the bill
January 22, 2013 by 3 Comments
Yesterday the European Commission approved “temporarily” the recapitalisation of a Portuguese bank Banif with €1.1 billion. The Commission will take a final decision on the compatibility of the capital injection with EU state aid rules after the assessment of the restructuring measures will be proposed by Portugal. Presumably those restructuring measures will be layoffs […]
