It was not a coincidence that the Governing Council of the European Central Bank suddenly decided unanimously last week to further relax its monetary policy promising more and cheaper loans to all banks, exactly at a time when the US central bank, the Fed, is about to start calling back the trillions of dollars it […]Why the ECB suddenly decided to flood banks with money?
July 10, 2013 by 1 Comment
It was not a coincidence that the Governing Council of the European Central Bank suddenly decided unanimously last week to further relax its monetary policy promising more and cheaper loans to all banks, exactly at a time when the US central bank, the Fed, is about to start calling back the trillions of dollars it […]The EU Parliament endorses tax on financial transactions
July 4, 2013 by Leave a Comment
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 […]EU-US trade agreement talks to be affected by American bugs
July 3, 2013 by Leave a Comment
Bugging EU institutions’ premises and members states’ offices in the US by American secret agencies may seriously affect the progress of negotiations for the conclusion of a Free Trade and Investments Agreement between the two largest trading partners of the world. While the first reactions by EU dignitaries, after the revealing publications by Der Spiegel […]EU budget deal struck with Parliament negotiators
June 20, 2013 by Leave a Comment
Negotiations for the European Union proper budgets for the 2014-2020 period between European parliament representatives, the Irish Presidency and the European Commission have been concluded. This is the so-called Multiannual Financial Framework 2014-2020, setting the ceiling for EU spending. The agreement will now be submitted to both the Council and the European Parliament for final […]Europe rethinking its severe austerity policies
June 19, 2013 by Leave a Comment
During the past few weeks there is a noticeable change of climate in Brussels towards a more relaxed attitude over economic policies. On Monday the President of Eurogroup and minister for Finance of Holland, Jeroen Dijsselbloem asked in a letter his 16 colleagues in view of their Luxembourg meeting, to reduce the sovereign debt […]European Union disenchanted with Turkey
June 13, 2013 by Leave a Comment
The accidental coincidence of the visit of the European Commissioner Štefan Füle, responsible for Enlargement and Neighbourhood Policy to Turkey last week, with the crtical moment when the events in Istanbul’s Taksim Square were at their peak, may affect negatively the relations between the EU and this country. Negotiations over Ankara’s roadmap to become one […]The Irish Presidency bullies the Parliament over EU budget
June 5, 2013 by Leave a Comment
It is unbelievable how strongly and some-times unduly the Irish Presidency of the EU Council presses the European Parliament in the negotiations over the Multiannual Financial Framework 2014-2020, which sets the limits for the EU budget spending for the next seven years. The Irish government ministers who are conducting those negations act as if Ireland […]EU leaders slammed on anti-tax evasion inaction and expensive energy
May 29, 2013 by 1 Comment
Only days after the 27 EU leaders gathered in Brussels on 22 May and decided that, “The supply of affordable and sustainable energy to our economies is crucial”, Eurostat, the EU’s statistical service, announced that, “in the second half of 2012 household electricity prices in the EU27 rose by 6.6% and gas prices by 10.3%”. […]‘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 […]EU Commission and ECB rebuff Germany on the Banking Union
May 28, 2013 by Leave a Comment
Michel Barnier the European Commissioner responsible for the Internal Market and Services in a clear-cut way broke yesterday Commission’s silence and joined the European Central Bank’s approach, over the creation of an effective European Banking Union, able to guarantee that failing or about to fail banks will be duly resolved or managed by one central […]ECB settles the bank resolution issue, makes banking union tangible
May 25, 2013 by Leave a Comment
The enactment of the European Banking Union emerges now as the next statutory step for Eurozone and the European Union as a whole, if the block is to continue as a solid entity or starts unravelling during the next credit crisis, which might not be very far away. In any case the European Central Bank […]The EU Parliament slams Commission on economic governance
May 24, 2013 by Leave a Comment
European Commission vice President, Ollie Rehn, responsible for Economic and Monetary Affairs and the Euro, delivered a speech in the European Parliament on the “Social pillar of the European Monetary Union-EMU”, which was very ill-received by the legislators. The Parliamentarians yesterday went as far as to comment bitterly in a resolution they issued afterwards, saying […]European Union: Retail sales show deep recession
May 8, 2013 by Leave a Comment
Retail trade sales are to be found in the core of effective demand in every advanced economy. Being the driving force behind consumer spending they are considered as the main indicator for the general course of the economy, that is if it grows or recedes. Unfortunately for Eurozone and for the European Union in general […]Who is to profit from the quasi announced ECB rate cut?
April 25, 2013 by Leave a Comment
It is probably the first time in the annals of the European Central Bank that its president and vice president went so close as to almost announce the next interest rate reduction. Yesterday ECB’s Vice-President Vitor Constancio, presented the central bank’s Annual Report for 2012 to the Committee on Economic and Monetary Affairs of the […]Can the EU last long if it cuts Cyprus out?
March 22, 2013 by Leave a Comment
The latest and most important rhapsody in the Cyprus tragedy was performed yesterday morning by the twenty-three members of the European Central Bank’s governing council. The text issued by them was very brief and went like this: “The Governing Council of the European Central Bank decided to maintain the current level of Emergency Liquidity Assistance […]EU prepares a banking union amidst financial ruins
March 21, 2013 by Leave a Comment
There was no better opportunity than now, to observe how unfounded and shallow the institutional structure of Eurozone was, probably for the big guys to do whatever they liked. At a time when the Cyprus banking sector threatens to drive the whole island to a shipwreck, the European Parliament, the Council and the Commission are […]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 […]At last some rules on banks
March 1, 2013 by Leave a Comment
The public outcry against bankers at last produced some tangible results in Brussels. According to a ground-breaking agreement struck between the European Parliament and the Irish Presidency of the Council of the European Union, bankers’ bonuses are capped at the double of their annual salaries. Secondly the capital requirements of the banks are increased to […]EU Parliament raises burning issues over the FTA with the US
February 22, 2013 by Leave a Comment
Yesterday, the European Parliament’s International Trade Committee discussed for the first time, the much advertised joint announcement by the EU and the US, to start negotiations for the conclusion of a bilateral Free Trade Agreement. As the European Sting predicted the FTA negotiators would be confronted with two very old and very thorny issues. According […]“Two Pack” approved: Is democracy chased away from Brussels?
February 21, 2013 by Leave a Comment
Yesterday, the Presidency of the European Council came out triumphantly announcing an agreement with the European Parliament, over the so called ‘Two Pack’ Commission’s proposal, to ‘improve’ budgetary and economic coordination among Eurozone countries. The Irish minister of Finance, Michael Noonan, president of the ECOFIN Council, said he achieved that on behalf of EU member […]The European Parliament floating over the South China Sea
February 18, 2013 by Leave a Comment
A group of European Parliament members, representing the House Delegation for South East Asia and the ASEAN countries (DASE), while visiting the Philippines last week said, they support the country’s move to refer territorial differences over the South China Sea to United Nations. Those differences involve six countries of the region the Philippines, China, Vietnam, […]Financial Transaction Tax: More money for future bank bailouts?
February 15, 2013 by 3 Comments
The European Commission announced today the details of the implementation of the Financial Transaction Tax (FTT), under the procedure of the enhanced cooperation. It must be noted that such a procedure may be launched at the request of at least nine EU member states. Incidentally, the eleven member states actually wishing to introduce a financial […]EU budget agreement rejected by the European Parliament
February 9, 2013 by Leave a Comment
Driven by the stubbornness of the British PM David Cameron, who was effectively supported by the austerity loving German Chancellor Angela Merkel, the EU Summit of 7-8 February agreed yesterday on the Union’s budget. Theoretically their decision binds EU spending for the seven year period of 2014-2020. The European Parliament however is of a completely […]Eurozone’s sovereign debt not a problem anymore?
January 25, 2013 by Leave a Comment
Understandably sovereign debt statistics for Eurozone and the EU have become most crucial over the past five years, not only for the implicated countries but also for the global financial community. Until recently a bad spell over Greece’s prospects concerning its government debt could send all and every world market to a downwards spiral. And […]Capital transaction tax on Ecofin table
January 19, 2013 by Leave a Comment
Next Tuesday 22 January, the Economic and Finance Ministers Council (ECOFIN) is expected to meet in Brussels. As a main item in its agenda has being tabled the Financial Transactions Tax (FTT). So far only 11 EU member states out of the 27 have agreed to go through with it. The 11 participating EU countries are […]The European Parliament fails to really restrict the rating agencies
January 17, 2013 by Leave a Comment
The European Parliament adopted yesterday tougher rules for the issuance of creditworthiness ratings on governments and private businesses by the relevant agencies. Obviously the new legislation was voted in relation with and aims to set new restrictions on the activities of the three largest of them, namely Standard & Poor’s, Moody’s and Fitch IBCA. But […]
