The Americans are preparing for the next financial crisis

Last week, Janet Yellen, Chair of the Board of Governors of the Federal Reserve System, in more than one ways revealed that the American central bank prepares to confront the next financial downturn. On Wednesday, 28 September, speaking at the House Financial Services Committee in Washington D.C. , she defended the Fed’s rigorous supervision over […]

Is the ECB enforcing the will of the big Eurozone member states on the small? Can the euro area live with that?

Reviewing the political or economic events in retrospect always gives the observer a privileged position. This is the point where Benoît Cœuré – a Member of the Executive Board of the European Central Bank – found himself at an interview last Monday. At some point he was asked if the ECB had suffocated Greece’s commercial […]

Does the Greek deal strengthen the Eurozone? Markets react cautiously

Is Eurozone strengthened after the Greek deal? At first reading the answer is a straightforward ‘yes’ because the other option, the Grexit, the exit of the country from the euro area, would have reversed the theoretically irreversible participation in the monetary zone. According to the Treaties, on which the Economic and Monetary Union (EMU) of […]

The banks want now free capital from taxpayers

Benoît Cœuré, a Member of the Executive Board of the European Central Bank, delivered a speech today on “The implications of bail-in rules for bank activity and stability”. This was the opening speech at conference on “Financing the recovery after the crisis – the roles of bank profitability, stability and regulation”, staged by Milan’s Bocconi […]

Italy’s Letta: A European Banking Union soon or Eurozone collapses

While the European Council of the 27 EU leaders has only ‘energy’ and ‘taxation’ in its agenda today, with poor results expected on both accounts, the hot issue of the European Banking Union will probably consume most of the time in the side meetings. The enactment of the EBU has become now the main point […]

Berlin wants to break South’s politico-economic standing

Amidst the Cyprus banking crisis there was no room in the first page of mainstream media, to analyse and comment on the decision of the Spanish government to impose a haircut (tax), albeit small, on the country’s bank deposits to the tune of €3 to every thousand. In the face of it, the Madrid exchequer […]