Draghi to lay his print on long term ECB policies prior to exiting next year

Mario Draghi, the President of the European Central Bank, was criticized by major global financial media for insisting to end the easy money policy this December. The argument is that, after ECB’s Governing Council decided at the end of the prosperous 2017 to end its extraordinary monetary policy, the world has become a riskier place. […]

The London City-EU connection holds despite of Brexit and the ban of LSE-Deutsche Börse merger

European Commission’s decision to ban the Deutsche Börse – London Stock Exchange merger, on the one hand solved a long list of problems it could have triggered, in view of and after the Brexit. On the other hand though, this decision has created probably as many issues, because London is the long established low cost […]

Greece’s Tsipras: Risking country and Eurozone or securing an extra argument for creditors?

The Greek Prime Minister Alexis Tsipras and his governing left wing SYRIZA party, cornered between its populist rhetoric for greener grass and the realities of the dragging on negotiations with the country’s creditors, called for a referendum next Sunday 5 July without a clearly defined question, denying to exactly clarify where the ‘yes’ or the […]

European Court rules that ECB’s OMT program of 2012 is OK; not a word from Germany about returning the Greek 2010 courtesy

Last Tuesday 16 June the European Court of Justice issued a historic decision ruling that Mario Draghi was legally correct when on 26 July 2012 speaking at the Global Investment Conference in London said the famous phrase, “…the ECB is ready to do whatever it takes to preserve the euro. And believe me, it will […]

How Germany strives to mold ECB’s monetary policy to her interests

Sabine Lautenschläger, a Member of the Executive Board of the European Central Bank and at the same time Vice-Chair of the Supervisory Board of the Single Supervisory Mechanism is in itself a living proof that euro area is a Germanic monetary zone, in reality an extension of the zone of the German mark. According to […]

ECB’s billions fortify south Eurozone except Greece; everybody rushes to invest in euro area bonds zeroing their yields

Even without having spent yet a single euro the European Central Bank’s program of sovereign bond buying of €60 billion a month has had an enormous impact on world financial markets. It suppressed the euro dollar parity from the unbearably high levels of 2014 (1.39 on 9 March 2014) to 1.08510 last Friday, the lowest […]

Will ECB win against low inflation by not following Quantitave Easing?

On the 5th of June, the European Central Bank (ECB) decided not to fully deploy all the tools of Quantitative Easing (QE) programme, which showed that the ECB is not yet ready to risk everything in order to deal with low growth and inflation rates. Christine Lagarde, Managing Director of the International Monetary Fund (IMF) […]

Greece returns to markets at a high cost to taxpayers, after four years out in the cold

The time that Greece has been waiting for, for quite a long time (4 years) is about to come. Athens is now floating in the capital markets a sovereign bond issue of about €2.5 billion and already unofficial offers from investors have reached €16bn. A very hefty multiple coverage so far of 6.4 times. The book of […]

Is it impossible to place the banks under control?

Within the next few weeks the European Commission is expected to announce a proposal for a structural reform in the banking sector. The declared target is to make sure “that banks do not remain or become too-big, too-complex or too-interconnected to fail”. In announcing its intentions on this grandiose plan, the EU’s executive arm states […]

Why capital markets have no more reservetions about Eurozone

Borrowing on international markets is not at all a straightforward activity. Things are even more complicated when it comes to long-term debt paper with maturities spanning to decades. This little theory tells a lot about Eurozone’s creditworthiness. As a matter of fact, during the last few weeks the European Financial Stability Facility (EFSF) borrowed from […]

The EU Parliament endorses tax on financial transactions

The European Parliament yesterday gave its final go ahead for the introduction of the Financial Transaction Tax (FTT) to be applied in the 11 Eurozone member states, which had initially accepted this Commission proposal. The European Parliament has a consultative role on tax matters. Consequently now it’s up to the 11 participating countries in this […]