Deutsche Bank: the next financial crisis is here and the lenders need €150 billion from taxpayers

Deutsche Bank Towers – View of the entrance. Headquarters in Frankfurt am Main. (Deutsche Bank Audiovisual Services).

Last Monday David Folkerts-Landau, the chief economist of Deutsche Bank, the ailing largest lender of Germany, in an interview with the prestigious newspaper ‘Die Welt’ stated that European banks must be subsidized with €150 billion in rescue money to recapitalize. Obviously, it will be the taxpayers to once more provide the capital the euro area […]

Brexit casts a shadow over the LSE – Deutsche Börse merger: a tracer of how or if brexit is to be implemented

Deutsche Börse. The main building in Frankfurt am Main. No need to say that last week the London Stock Exchange Group plc (LSEG) shareholders approved the merger with the German bourse with the astonishing 99.98%. It is clear that, after 23 June, London begs for the merger. (Deutsche Börse Audiovisual Services).

One of the most direct and important consequences of the Brexit vote is the uncertainty it casts on the merger of Europe’s largest stock exchanges and clearing houses, the London Stock Exchange and the German bourse in Frankfurt, the Deutsche Börse. The two mammoth institutions, the double sun of Europe’s financial universe, last March agreed […]

Conflicting statistics and bad banks haunt the Eurozone

Peter Praet, member of the Executive Board and Chief Economist of the European Central Bank on the left, and Vincent Aussilloux, Director of the Department "Economics and Finance" of "France Stratégie". They both participated in the Seminar of the European Political Strategy Centre (EPSC) on the "European System of Competitiveness Authorities". Date: 15/10/2015. Location: Brussels - EC/Berlaymont. © European Union, 2015 / Source: EC - Audiovisual Service / Photo: Etienne Ansotte.

Last week, Eurostat, the EU statistical service, released its flash estimate of the GDP of the first quarter of 2016, finding it, in both the Eurozone and the EU28, to be 0.5% bigger in comparison to the previous period. In the fourth quarter of 2015, GDP had also grown by 0.3% and 0.4% respectively. Does […]

The Monetary Union drives Europe into dangerous paths, CoR demands an EMU of regional content

Corina Creţu, Member of the European Commission in charge of Regional Policy (in the center), received a group of Members of the Committee of the Regions (CoR). Location: Brussels - EC/Berlaymont. © European Union, 2015 / Source: EC - Audiovisual Service / Photo: Lieven Creemers.

Last Thursday 7 April, the European Committee of the Regions (CoR) concluded that there is “No successful reform of the Economic and Monetary Union without a regional dimension”. Indirectly, this means the EMU remains a system just to support the banking industry. In other words, the banks are still completely unregulated, high flying and counting […]

ECB money bonanza not enough to revive euro area, Germany longs to rule with stagnation

The President of the European Central Bank Mario Draghi. (ECB Audiovisual Services).

During the days ahead of last Thursday’s 3 December meeting of the European Central Bank’s Governing Council, financial markets and market oriented media had been pressing for a stronger monetary accommodation (easing), than what President Mario Draghi finally announced in the afternoon of that day. As a result, the euro appreciated markedly with the dollar […]

Draghi rehabs ECB into a tool to support growth and employment; a departure from Teutonic orthodoxy

Euro Summit. Donald Tusk, President of the European Council (second from left) meets Mario Draghi, President of the European Central Bank (first from right). (European Council - Council of the European Union Audiovisual Services. Shoot location: Brussels – Belgium. Shoot date: 07/07/2015 Copyright credit 'The European Union').

On Thursday 22 October Mario Draghi, the President of the European Central Bank delighted the world capital markets with his comment about the “factors that are currently slowing the return of inflation to levels below, but close to, 2% in the medium term” He added that “In this context, the degree of monetary policy accommodation […]

Why the ECB prepares to flood the markets with more and free of charge euro; everybody needs that now

Euro Summit. Mario Draghi, European Central Bank President participated in the July 2015 European Council Summit. (Shoot location: Brussels – Belgium. Shoot date: 07/07/2015. Copyright credit: 'The European Union').

Mario Draghi’s statement of last Thursday from Malta that the European Central Bank’s “monetary policy accommodation will need to be re-examined at our December monetary policy meeting”, offered a strong support to all major capital markets, with stocks gaining a lot of ground and the euro receding slightly. Understandably, a generous increase of ECB’s monthly […]

A new global financial crisis develops fast; who denies it?

Xi Jinping, President of the People's Republic of China, visited the European Commission. Jinping, in the foreground, on the left photographed here with Li Zhanshu, Member of the Political Bureau of the Central Committee of the Communist Party of China (CCCPC); Member of the Secretariat of the CCCPC; Head of the General Office of the CCCPC, on the right. (EC Audiovisual Services, Date: 31/03/2014 Location: Brussels - EC/Berlaymont).

During the last two weeks the world’s largest stock markets had a wild time not seen since Lehman Brothers went bust on 15 September 2008. The New York stock exchange in Wall Street lost more than 8% of its capitalization in a few days and then recovered some of the losses to close last Friday […]

EU Commission: The banks are not obliged to finance the real economy

Press conference by Michel Barnier, Member of the European Commission, on the adoption of a follow-up Communication to the Green Paper on the Long-term financing of the European economy. (EC Audiovisual Services, 27/3/2014).

At a time when the Eurozone banks have received for free €4.5 trillion of taxpayers’ money and at least another €3 trillion from the ECB at close to zero interest rates, the Commission dares to ask the pension funds and the Internet to replace the banks in financing economic growth in the crisis stricken and […]

Predicting two more years of economic stagnation

José Manuel Barroso, President of the European Commission (in the centre), Olli Rehn, Vice-President of the EC in charge of Economic and Monetary Affairs and the Euro (on the left), and Michel Barnier, Member of the EC in charge of Internal Market and Services, gave a joint press conference on the blueprint for a deep and genuine Economic and Monetary Union (EMU). (EC Audiovisual Services).

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 […]