Mario Draghi didn’t do it but Kim Jong-un did

Inauguration of the European Central Bank's new premises on 18 March 2015 in Frankfurt am Main, Germany. Mario Draghi (in the middle) cuts the ribbon. (European Central Bank Audiovisual Services).

Last Thursday, Mario Draghi, the President of the European Central Bank, was unable to move the capital and money markets with his customary monetary policy Press conference in Frankfurt am Main. On the contrary, North Korea’s leader Kim Jong-un, a global castoff, did it the next day just by pressing a button. However, it took […]

Why are the financial markets shivering again?

The financial district of the City of London. Audiovisual service presse.audiovisuel@consilium.europa.eu. © European Union.

The major central banks of the world are currently in the middle of a precise but of dubious results surgical operation on capital markets. On the one hand, the monetary authorities aim at supporting the real economy by injecting more cash into the financial system. On the other, they try to mitigate the risky super […]

Germany objects to EU Commission’s plan for a Eurozone bank deposits insurance scheme but Berlin could go along

Commissioner Lord Hill, responsible for Financial Stability, Financial Services and the Capital Markets Union while presenting the European Deposit Insurance Scheme (EDIS) plan said: "The crisis revealed the weaknesses in the overall architecture of the single currency…Now we need to take steps towards a single deposit guarantee scheme… step by step, we need to make sure that risk reduction goes hand in hand with risk sharing. That is what we are determined to deliver." (© European Union, 2015 /  Source: EC - Audiovisual Service , Shimera / Photo: Jacquemart Jennifer. The picture was taken on 30/9/15, on the occasion of a Press conference on the Capital Markets Union action Plan).

Last Tuesday the European Commission aired a groundbreaking proposal, about the creation of a euro-area wide insurance scheme for bank deposits. In this way the European Banking Union will start having a meaning for the average European. It’s a plan for a European Deposit Insurance Scheme (EDIS) which is meant to complete the Banking Union […]

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

Jean-Claude Juncker, President of the EC, received Alexis Tsipras, Greek Prime Minister, (on the left) ahead of the Euro Summit on Greece, which took place last week. (EC Audiovisual Services, Date: 22/06/2015 Location: Brussels - EC/Berlaymont).

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 […]

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

Eurogroup meeting - February 2015.  From left to right: Wolfgang Schauble, German Federal Minister for Finance, Mario Draghi, President of the European Central Bank. Eurozone finance ministers participate in an Extraordinary Eurogroup meeting on 11 February in Brussels. Extensive discussions for an agreement on the Greek program take place during today's Eurogroup meeting, in Brussels. (European Council - Council of the European Union Audiovisual Services, Shoot location: Brussels – Belgium Shoot date: 11/02/2015)

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 […]

Eurozone: The crisis hit countries are again subsidizing the German and French banks

European Commission vice President Siim Kallas, speaking at the not so plenary session of the European Parliament. (EP Audiovisual Services).

The European Commission, the European Central Bank and the International Monetary Fund, the infamous ‘Troika’, officially declared that Portugal has successfully completed the assistance program and now as a financially self-sustainable country she can address herself to the markets, whatever this last term means. Towards the end of April, Portugal sold a €750 million bond […]

Why capital markets have no more reservetions about Eurozone

Eurogroup Meeting. Wolfgang Schauble, German Federal Minister for Finance, Jorg Asmoussen, Member of the Executive Board of the European Central Bank and Pierre Moscovici, French Minister of Finance, from left to right. (Eurogroup Photographic Library 08.07.2013).

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 […]

Eurozone: New data show recession and debt closer to explosion

Press conference by Olli Rehn, Vice-President of the European Commission on the spring economic forecasts, (EC Audiovisual Services).

Yesterday the world was informed that Eurozone is stuck into recession, after the Eurostat, the EU statistical service, announced that the euro area GDP receded once more during the first quarter of this year. However, this was not news for those who follow closely what is happening in the single euro money zone. Only some […]

Eurozone plans return to growth

From left to right: Pierre Moscovici, French Minister of Finance; Christine Lagarde, Managing Director of the IMF; Wolfgang Schauble, German Federal Minister for Finance; Maria Fekter, Austrian Federal Minister for Finance, (Council of the European Union photographic library).

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 […]

Eurozone 2013: Where to?

Angela Merkel, German Federal Chancellor, Mario Monti, Italian Prime Minister; Minister for Economy and Finance ad interim, and José Manuel Barroso (from right to left)

In 2012, Eurozone not only managed to effectively counter its double-faced, credit and sovereign debt crisis, but also convinced the global financial community, that the single European currency is probably the safest deposit of value. The world responded positively by voting the euro at the region of 132 American cents. A fair price, to keep […]