Commission goes less than mid-way on expensive euro

Olli Rehn, the EU Commissioner for the Economy took the floor yesterday, over the euro exchange rate market developments. As he usually does, Rehn wanted on this issue too, to be seen as going mid-way between Berlin and Paris. The question to be answered is of course, if the euro is expensive or not? However […]

What our leaders hide from us

Europe had a very interesting day yesterday. Let’s see why. First was the British PM who delayed the EU Summit for five hours, then an agreement was announced to reduce the Irish sovereign debt by €20 billion and finally it was Mario Draghi, who helped contain the hike of the euro vis-à-vis the dollar, just […]

More bank bailouts at taxpayers’ expenses

Yesterday the European Sting wrote that the Vítor Constâncio, Vice-President of the European Central Bank was asking for more taxpayers’ money to support careless “systemic” banks in case they fail. Possibly he could have longed to deny this “accusation”. To this effect he will get the floor here below to defend himself. In a speech […]

EU Parliament semi worried over democratic deficit

Yesterday at the European Parliament in Brussels, during the closing session of the Parliamentary week devoted to the European Semester (EU economic governance – fiscal treaty), a joint group of EU parliamentarians and members of national parliaments concluded, that the under construction closer economic and monetary union calls for more democratic control. The MEPs and […]

Banks suffocate the real economy by denying loans

  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 […]

Everybody against Japan over yen’s devaluation

Yesterday, Jörg Asmussen, Member of the ECB’s Executive Board speaking in an interview to a Greek newspaper said, that the issue of the Japanese yen devaluation should be referred to the G7 and the G20 councils. He added that if each-one goes for himself with national currency competitive devaluations, the outcome will be catastrophic for […]

Inflation not a problem for Europe

The downward trend of Eurozone inflation was confirmed yesterday by Eurostat, the statistical service of the European Union. According to this source “Euro area annual inflation was 2.2% in December 2012, the same as in November. A year earlier the rate was 2.7%. The EU27 annual inflation was 2.3% in December 2012, down from 2.4% […]

The new European Union of banks is ready

Yesterday, José Manuel Durão Barroso, President of the European Commission, speaking in a farewell ceremony to honour the Cypriot Presidency of the European Union during the second half of 2012, made clear that the Commission has made the creation of the Single Supervisory Mechanism (SSM) for the EU banks as its utmost priority and will […]

ECB to support only banks not Peoples

In two different articles the European Sting yesterday made important references and observations on the policy lines followed by the European Central bank. ECB’s double standards Maria Milouv in her article entitled, “European financial values on the rise”, commented as follows: “With the prospect of a further reduction of ECB’s interest rates appearing now more distant […]

European financial values on the rise

No doubt the screams, mainly coming from English language media, economists and commentators about the possible dissolution of Eurozone have now subsided and only some late comers in the league of those who have bet on Eurozone’s destruction still try to salvage their wrecks, by predicting catastrophe. On the other side of the fence those […]

Draghi hands over to banks €77.7 billion more

The European Central Bank lent but in reality handed over yesterday 9 January a total amount of €77.7 billion to a number of Eurozone banks, under an arrangement called Main Refinancing Operation (MRO) at the negligible interest rate of 0.7% for a duration of 7 days. This is however the upper side of the iceberg. It’s […]

Eurozone business activity again on upwards path

  Business activity in Eurozone has being deteriorating for the past nine months. Last December however the PMI, index which measures this phenomenon, gave the first indications that the bottom of the dreadful U curve is now behind. In detail, the Purchasing Managers’ Index (PMI) for the industrial sector, being drafted on data over the demand […]

A new European banking space is born this year

The year 2013 can be termed as the European banking year, after the last EU Summit of heads of governments and states decided on 13 December to create a unified bank supervision and auditing space, under the European Central Bank in 24 out of the 27 countries, at the exemption of Britain, Sweden and the […]

Eurozone 2013: Where to?

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 […]

How many more financial crises in the West can the world stand?

“After five years of crisis the world economy is weakening again”, states bluntly the very first phrase of the editorial of OECD’s latest economic report, published on 28 November. Actually it couldn’t be differently, because the US economy doesn’t seem to respond well to therapy and Europe is in a much worse state. But let’s […]

Lagarde’s metamorphoses, not a laughing matter

International politico-economic relations is a tricky field, with the major players constantly changing stance, according to their short term interests, putting aside whatever honourable principles are left in their decision making procedures. And all that being discussed and decided upon, by a handful of people behind closed doors. If those people were not playing with […]

On the euro but out of it?

The fact that Greece reached the exit of Eurozone more than once during the past months and a Grexit (exit of Greece from Eurozone) is still not excluded did not stop the European Central Bank from keeping the country on the euro. This time however for decorative reasons. The ECB used the most ancient depiction […]

Long live Eurozone’s bank supervisor down with the EU budget supremo

EU leaders in their last summit of mid-October appeared ready to make another systemic blunder. After creating a limping Eurozone, with a common currency but not common rules for sovereign debt issues, now they discuss the institutionalisation of a common EU budget and a Brussels “supremo of Finance”. And all that with no political legitimacy. […]

European Union: From financial consolidation to deeper political division

In June 2012 the 17 Euro-area leaders who made a giant step forward towards a closer Eurozone union, when back home, those on the giving side, namely Angela Merkel, pretended that nothing has changed, while the ‘winners’ made it look like a gift, which it was not. As for the 10 heads of states and […]