With the unemployment rate always at double digit levels (11.5%), inflation falling again nearer to naught (0.3% in August), the Economic Sentiment Indicator (ESI) dropping and the Business Climate Indicator idling flat, the Eurozone economy is steadily heading to a dormant state at best or to a new long recession at worst. Speaking of overall […]Did Draghi ask the Germans to accept a drastic change of austerity policies?
September 2, 2014 by 1 Comment
With the unemployment rate always at double digit levels (11.5%), inflation falling again nearer to naught (0.3% in August), the Economic Sentiment Indicator (ESI) dropping and the Business Climate Indicator idling flat, the Eurozone economy is steadily heading to a dormant state at best or to a new long recession at worst. Speaking of overall […]ECB’s unconventional monetary measures give first tangible results
August 13, 2014 by Leave a Comment
A strong statement was delivered last week by Mario Draghi, President of the European Central Bank. He ascertained that the monetary measures already taken unanimously by the central bank’s Governing Council, “will enhance our accommodative monetary policy stance”. Those measures have led to an easing of the euro/dollar parity favouring a cheaper single money, a […]Industrial price dive may lead to point of no return
August 6, 2014 by Leave a Comment
Last Monday, Eurostat, the EU statistical service issued data on June industrial price developments (0.1% month to month), actually showing stagnation in relation to May. It is more alarming to observe though that all along the first five months of 2014, from January to May on a month to month basis, industrial prices had been […]Draghi’s ‘quasi’ announcement of a new era of more and cheaper money
May 12, 2014 by Leave a Comment
Mario Draghi, the ECB President, was more than explicit last week, that the European Central Bank will live up to its duty and do in June whatever it takes to help the Eurozone economy grow again and push inflation a bit upwards, back in line with the institutional target, which is below but close to […]Can the banking union help Eurozone counter its imminent threats?
May 5, 2014 by Leave a Comment
The completion of European Banking Union project last month, the most important undertaking of the EU after the introduction of the common euro currency, is undoubtedly the result of a long negotiated compromise, and as such it has many drawbacks. Firstly, it doesn’t recognize the fact that Eurozone’s mega-banks were the main culpable party for […]Half of Eurozone in deflation expecting salvation from monetary measures
April 17, 2014 by Leave a Comment
Five Eurozone countries posted negative inflation rate in March (Greece (-1.5%), Cyprus (-0.9%), Portugal (-0.4%), Spain and Slovakia (both -0.2%), while the rate of change of consumer prices ranged between 0.1% and 0.3% in another four euro area members states during the same month. In almost all the rest euro area countries, March inflation appeared […]The IMF overstates the risks for Eurozone and downgrades the threats for the US economy
April 9, 2014 by Leave a Comment
Once more, the International Monetary Fund, with its latest issue of World Economic Outlook, comes back to criticizing Eurozone’s low inflation rate calling it, a ‘key downside risk’ to global growth. Last week IMF’s managing director Christine Lagarde had also singled out Eurozone as the dark growth spot in the developed world threatened by super […]EU Commission: a rise in wages and salaries may help create more jobs
April 2, 2014 by Leave a Comment
The Eurozone unemployment rate in February remained stubbornly stuck at the high level of 11.9% since October 2013. According to Eurostat, the EU’s statistical service, the EU28 unemployment rate was 10.6% in February 2014, one decimal point lower than the 10.7% of January this year. Let’s dig a bit into unemployment. On an absolute number […]Data show EU Economy in a stubbornly subdued state
March 29, 2014 by 1 Comment
At the end of the first quarter of the year (end March 2014) the Eurozone economy doesn’t show any signs of change from its subdued state of the last twelve months. The bearish and widely diverging resumption of activities still prevails, after the four-year recession period which theoretically ended at the second quarter of 2013, […]Bank resolutions to remain a politically influenced affair
March 12, 2014 by Leave a Comment
Today in Strasbourg the three EU decision making bodies, the Council as represented by its Greek Presidency, the Parliament and the Commission, in a procedure called ‘trilogue’ will try to bridge their differences and come up with a ground breaking agreement to complete the European Banking Union. This is the most important project enterprised by […]Close to final agreement on the EU Banking Union
March 11, 2014 by Leave a Comment
Yesterday’s Eurogroup and today’s ECOFIN councils are convened almost exclusively to discuss the details of the two remaining gaps in the legal and of course the operating framework of the European Banking Union, which are, the Single Resolution Mechanism and the Resolution Fund. The two legislative bodies of the European Union, the Parliament and the […]A week to decide if the EU is to have a Banking Union
March 8, 2014 by Leave a Comment
This Monday and Tuesday, 10 and 11 March during the Eurogroup and the ECOFIN meetings respectively, the member states will show their willingness to compromise with the Parliament, in order to finalise the legal base of the European Banking Union. This would be the most important EU project after the common currency. The Banking Union […]Eurozone stagnates after exporting its recession to trading partners
March 5, 2014 by 1 Comment
Today Eurostat, the EU statistical service, published its second and more accurate estimate for the euro area and the EU28 Gross National Product during the last quarter of 2013, and confirmed its flash estimate of 14 February when it had reported GDP increases of 0.3% and 0.4% respectively, in relation to the previous quarter. On […]The EU to bear the cost of eventual sanctions against Russia
March 4, 2014 by Leave a Comment
It’s easy for Washington and London to threaten Russia with far reaching economic sanctions, but very many countries and businesses in continental Europe don’t see it that way. The US and Britain after having actively supported the ‘Kiev revolution’ which ousted Victor Yanukovych from the Presidency, now insist that the West imposes tough economic measures […]High unemployment to continue haunting the EU
March 1, 2014 by Leave a Comment
Eurostat, the EU statistical service, revealed yesterday that the “euro area (EA18) seasonally-adjusted unemployment rate was 12% in January 2014, unchanged since October 2013”. The number of people without a job though increased in January 2014 to 19,175 from 19,158 thousand in December 2013. The rate of unemployment remains obstinately stuck to those very high […]Eurozone: Despite anemic growth and shaky banks marks record trade surplus
February 15, 2014 by Leave a Comment
Yesterday morning, Eurostat, the EU statistical service, reserved a pleasant surprise to the European decision-makers by announcing its estimates for economic growth during the last quarter of 2013, with all four big Eurozone economies found in the positive part of the chart. Of course this development was not a surprise for Germany, but for both […]Industrial producer prices on free fall and stagnant output
February 14, 2014 by 1 Comment
During the last few days, Eurostat, the EU statistical service, has produced disappointing data on the Eurozone economy. Last week it was a fall of the volume of retail sales in December by 1.6%, compared to November. Also in December last year compared with December 2012 the retail sales index decreased by 1% in […]Who really cares about the 26.2 million of EU jobless?
February 4, 2014 by Leave a Comment
Yesterday, Eurostat, the EU statistical service, published an update of unemployment statistics for the European Union covering the period up to December 2013. In that month 26.200 million men and women in the EU-28, of whom 19.010 million were in the euro area (EA-17), were unemployed. Eurostat estimates that “Compared with November 2013, the number […]Economic sentiment and business climate stagnate in miserable euro area
January 31, 2014 by Leave a Comment
Tantalizingly slow proves the tempo of Eurozone’s economic resumption, if such a thing exists at all. According to the European Commission Directorate General for Economic and Financial Affairs (ECFIN), “in January the Economic Sentiment Indicator (ESI) increased by 0.5 points in the euro area (to 100.91) and by 0.9 points in the EU (to 104.7)”. […]A new proposal breaks the stalemate over the Banking Union
January 29, 2014 by Leave a Comment
According to the European Commissioner Michel Barnier, the Eurozone member states, who participate in the Eurogoup and the ECOFIN councils are ready to soften their position in the negotiations with the European Parliament, to lift the deadlock over the creation of the Banking Union. This is a step forward in resolving the stalemate around the […]Commission launches ‘Industrial Renaissance’ initiative
January 24, 2014 by Leave a Comment
Last Wednesday the European Commission presented a ground-breaking communication for a “European Industrial Renaissance”. With it, the EU’s executive arm “is urging Member States to recognise the central importance of industry for creating jobs and growth and to mainstream industry-related competitiveness concerns across all policy areas”. The truth is, however, that industry doesn’t play the […]IMF launches a new offensive against Germany
January 22, 2014 by Leave a Comment
In the latest issue of its World Economic Outlook (WEO), which was published yesterday, the IMF raises the tone of criticism against Europe. It’s again the risk of deflation and the projection that “economic slack will remain high”, the two axes which constitute the cutting edge of criticism of North America against Eurozone. The latest […]Income inequality threatens the socio-political structures in developed countries
January 21, 2014 by Leave a Comment
Christine Lagarde, Managing Director of IMF, is not renowned for her social concerns and sensitivities. Yet, while speaking last week at the National Press Club, in Washington DC, about “The Global Economy in 2014”, among other important policy proposals for the world to exit the era of the “seven weak years”, she didn’t forget to […]Eurostat: Real unemployment double than the official rate
January 21, 2014 by 4 Comments
Gender distribution in selected labour categories, age 15-74, EU-28, 2012 (Eurostat graph) Eurostat, the EU statistical service, revealed that the true unemployment rate in Eurozone during the third quarter of 2013 was much higher than the ‘officially’ recognised percentage of 11.5%, according to the definition of UN’s International Labour Organisation. Including the three forms of […]Eurostat confirms a dangerously fast falling inflation in Eurozone
January 17, 2014 by Leave a Comment
Yesterday Eurostat confirmed that the euro area inflation rate for December was down to 0.8% from 0.9% in November, dangerously approaching the negative part of the graph. The announcement coincided with IMF Managing Director Christine Lagarde’s warning that weak growth in Eurozone is now also threatened by deflation (continuously falling prices leading to real economy […]IMF’s Lagarde indirectly cautioned Eurozone on deflation
January 16, 2014 by Leave a Comment
Weak growth is threatened by deflation in the developed world, while emerging markets have to overcome the financial turbulences that lie ahead, due to forthcoming restrictive monetary policy by the US central bank, the Fed. This is what IMF Managing Director Christine Lagarde said yesterday, speaking at the National Press Club in the U.S. capital. […]No way out for Eurozone’s stagnating economy
January 15, 2014 by Leave a Comment
This morning the German Federal Statistical Office issued a Press release revealing that the country grew by a mere 0.4% last year. This is almost half than the 0.7% GDP increase that Germany recorded in 2012. Along the same line of developments, Eurostat, the EU statistical office, published a Press release estimating that the Eurozone […]Predicting two more years of economic stagnation
January 10, 2014 by Leave a Comment
Yesterday, as expected, the European Central Bank kept its basic interest rate unchanged at 0.25%. As usually, the decision was taken in the meeting of the bank’s Governing Council, the first of 2014. At this almost zero interest rate cost commercial banks get ample liquidity from the ECB and then lend this money to the […]Eurozone: A Sluggish economy offers no extra jobs
January 9, 2014 by Leave a Comment
Eurostat, the EU statistical service, released yesterday some mixed data on Eurozone economic prospects. For one thing, euro area (EA17) unemployment rate was reported at 12.1% in November 2013, stubbornly stable at this high level since last April. The EU28 unemployment rate was 10.9%, stable since last May. However, retail sales marked a good upturn […]Eurozone has practically entered a deflation trap
January 8, 2014 by Leave a Comment
With consumer price developments in Eurozone remaining below the one percentage unit for many months now, disinflation (falling inflation) is just some decimal points away from deflation (negative inflation). Yesterday, Eurostat, the EU statistical service, released its estimate for the December headline inflation at 0.8% , down one decimal point from 0.9% in November. This […]Bank resolutions set to remain a national affair
December 12, 2013 by 1 Comment
Negotiations over the drafts of three key directives destined to mark the future of Eurozone, namely the Bank Recovery and Resolution Directive, the Bank Deposits Guarantees Schemes and the Single Resolution Mechanism remain so elusive, that every minister of Finance when leaving Brussels last Tuesday night set the focus on what his or hers home […]Rehn very reserved about growth in Eurozone
December 5, 2013 by Leave a Comment
Yesterday, Olli Rehn, the Vice-President of the European Commission responsible for Economic and Monetary Affairs and the Euro delivered a speech in the European Parliament, entitled “The recovery of the European economy”. In doing that, he couldn’t resist the temptation to reveal the truth that the recovery of the European economy which timidly appeared […]Mixed news about the Eurozone economy
December 2, 2013 by Leave a Comment
According to a flash estimate released by Eurostat, the EU statistical service, Eurozone annual inflation was 0.9% in November, slightly higher than 0.7% in October. Excluding the items under the categories of energy, food, alcohol & tobacco, the November inflation rate is thought to have been 1% after 0.8% in October. Price developments in the […]
