Italy’s populist government appears determined to drive EU economy and markets into recession

The Italian budget plan has recently created turbulences and serious concerns in the EU economy as the third largest economy of the bloc cuts growth forecasts and increases spending. The European Commission together with the International Monetary Fund (IMF) have urged the Italian government to restate its budget and comply with the EU fiscal rules […]

Parallel downfalls of Merkel and Deutsche Bank threaten Germany and Europe

Only a few years ago, Germany’s stars of pride and accomplishment were personified and embodied in the unparalleled triumphant stories and achievements of Chancellor Angela Merkel and Deutsche Bank. They both had amazed Europe and the world, with their successes in the politico-economic universe. Until the legislative elections of September 2017, and probably sometime earlier […]

Greece bailout ends but with no substantial effect on citizens’ life

It was yesterday when the Prime Minister Alexis Tsipras stated from the Greek island of Ithaca that the austerity measures are over cheering for the Greek bailout programme exit. Mario Centeno, the chairman of the ESM’s board of governors, had said last Monday that Greece is once more a nation which doesn’t need any additional […]

Shifting Tides: Policy Challenges and Opportunities for the G-20

This article was written by Ms Christine Lagarde, Managing Director of the International Monetary Fund. The opinions expressed belong to the distinguished writer. The article was first published in IMF blog. The artist Claude Monet once said, “I worked without stopping, for the tide at this moment is just as I need it.” As the Group […]

IMF: World cup and productivity

This article is brought to you in association with IMFBlog on the occasion of Russia World Cup Written by IMFBlog The World Cup and productivity.  Two of our favorite topics, together in one chart.   How much your productivity—the amount you produce per hour of work—takes a hit during the World Cup depends on where you […]

IMF: How To Deal With Failed Banks

This article is brought to you in association with the International Monetary Fund Written by Deniz Igan, July 3, 2018 During the global financial crisis, policymakers faced a steep trade-off in handling bank failures. Using public funds to rescue failing banks (bail-outs) could weaken market discipline and lead to excessive risk taking—the moral hazard effect. […]

IMF: When high yield goes boom

This article is brought to you in association with the International Monetary Fund Written by Divya Kirti We’ve all heard about good cholesterol and bad cholesterol. Too much of the good stuff probably won’t do you any harm. Too much of the bad stuff can lead to a heart attack. The same idea applies to […]

IMF’s Lagarde: Estimating Cyber Risk for the Financial Sector

This story is brought to you in association with the International Monetary Fund Written by Christine Lagarde, IMF’s Managing Director Average annual losses to financial institutions from cyber-attacks could reach a few hundred billion dollars a year (photo: Eti Ammos/iStock by Getty Images) Cyber risk has emerged as a significant threat to the financial system. […]

IMF’s Lagarde: Ukraine must fight corruption

This story is brought to you in association with the International Monetary Fund Statement by the IMF Managing Director on Ukraine, June 19, 2018 Christine Lagarde, Managing Director of the International Monetary Fund (IMF), and Petro Poroshenko, President of Ukraine, spoke yesterday about recent events. Following the call, Ms. Lagarde issued the following statement: “I […]

IMF: All you want to know about Argentina

This article is brought to you in association with the International Monetary Fund Written by IMF staff Frequently asked questions about Argentina, June 7, 2018 How much money will be disbursed to Argentina to support the new economic plan? Argentina and IMF staff have reached an agreement on an economic plan that can be supported by […]

From Shadows to Sunlight, Paraguay’s Road to Transparency

This article is brought to you in association with IMF Blog Current Paraguayan Finance Minister Lea Giménez Duarte knows first-hand that transparency pays off. In this podcast, Duarte says the changes began after the government passed a transparency law in 2014. “We started to rethink about how we manage resources, and why it’s important for […]

IMF: The near-term outlook for the U.S. economy is one of strong growth and job creation

This article is brought to you in association with the International Monetary Fund. It has being released by IMF’s Communications Department IMF Staff Concluding Statement of the 2018 Article IV Mission for the United States of America A Concluding Statement describes the preliminary findings of IMF staff at the end of an official staff visit (or ‘mission’), in most […]

Our Digital Future

This article is brought to you in association with IMFBlog Written by Camilla Lund Andersen “Money makes the world go around,” Liza Minnelli famously sang in the movie Cabaret. Money has for centuries been central to human relationships. Loss of faith in its value can result in economic and political instability, even war. In the […]

A Trumpist squad shook Davos and the world

Towards the end of last week, in Davos, a money devaluation war broke out. In the ‘magic’ Alpine mountains American Trumpist dignitaries did what was expected of them: they told the world they don’t give a damn about it…Trump himself, however, appeared a bit less Trumpist than his folk. Overall though, a US administration squad […]

Germany not famous for easy way outs from political stalemates

And now ‘Frau Bundeskanzlerin’ what? The truth is though whatever the future holds for the German political landscape, is no good. Chancellor Angela Merkel’s failure last weekend to form a government, with a viable parliamentary majority has irreparably stained the so far pristine scenery of the country’s politico-economic affairs. The unsuccessful attempts to convince liberal […]

Has the EU economy truly revived from the financial crisis?

Last week the European Commission published a press release regarding EU’s recovery from the financial crisis where it is mentioned that the EU, after 10 years since that start of the crisis, is back to growth because of the EU influential actions. What is more, it was announced yesterday that Germany’s gross domestic product in […]

Chatterbox Rome Declaration cannot save the EU; Germany has to pay more to do that

Last Saturday, the phantom of Wolfgang Schaeuble, the hawkish German minister of Finance, overshadowed the gathering of the 27 EU leaders in the Italian capital, without him having left Berlin. The heads of EU states or governments, at the exception of British MP Theresa May, went there to celebrate the 60th anniversary after the signing […]

Davos: Why the global elites couldn’t find answers this year?

Last January, Donald Trump and Boris Johnson were not invited to Davos to present their populist, anti-systemic, anti-establishment, anti-globalization political platforms. Actually, their ‘ideology’ was exorcised from the Swiss Alps and instead, David Cameron was made the star of the three day 2016 meeting. The world’s super rich and powerful applauded his passionate speech about […]

“China will strive to enhance the performance of economic growth”, President Xi highlights from the World Economic Forum 2017 in Davos

The first day of the World Economic Forum (WEF) began with the opening plenary with Xi Jinping yesterday, President of the People’s Republic of China, monopolizing the interest of the global economic status quo convening these days at the Swiss Alps. This was the first time ever a Chinese President accepts the Davos invite and naturally all the […]

Deutsche Bank chased away from US, threatened with more fines

The US Department of Justice settled its claims against Deutsche Bank, the biggest German lender, for packaging and selling toxic mortgage securities to uninformed customers prior to the 2008-2010 financial crisis. Initially, the Justice Department had asked for $14 billion, but it seems it settled for a fine of $7.2bn. However, this is not the […]

Trump ostracized by his party and world elites but still remains in course; how can he do it?

Four weeks ahead of the American Presidential elections day of 8 November, and the campaign of the Republican Party and its candidate Donald Trump is in unseen before havoc. Most prominent Republicans in one way or another have undermined the prospects of their own contester to win. It’s pretty clear by now that the establishment […]

IMF – World Bank meetings: US – Germany clash instituted, anti-globalization prospects visualized

This year’s annual meetings of the IMF – World Bank Group in Washington D.C., which kicked off on Thursday 6 October, turned out to be an all out financial war of words between the United States and Germany. In the middle of it stands the battered Deutsche Bank. For a start, there was a confrontation […]

The EU responds to US challenges by fining Apple with €13 billion

Last Tuesday, the White House and the US Treasury in concerted actions issued farfetched statements against the EU Commission. The EU executive’s decision ordered the US giant technology company Apple Inc. to pay additional taxes of up to €13 billion in Ireland. These instant and strong reactions clearly denote that the US sees this Brussels […]

No end to Deutsche Bank’s problems: new litigations in the US and frailty in EU stress test

Last Wednesday, Deutsche Bank’s shares fell by 4.5% in the first hour of trading in Frankfurt, after the bank released its second quarter results, showing a measly profit of €20 million, in comparison to €818 million last year. The percentage fall of this stock is the biggest ever in such a brief time in the […]

Deutsche Bank slammed by the US-based trio of IMF, Fed and Moody’s

Last Thursday morning the International Monetary Fund and the American central bank, the Fed, simultaneously but in the face of it independently, issued warnings about the health of the largest German lender, the long ailing Deutsche Bank. A few days before that the US rating agency Moody’s had degraded the creditworthiness of the bank close […]

The UK referendum has already damaged Europe: even a ‘remain’ result is not without cost to Britain and the EU

The adult Brits are deciding today about their country’s position in or out the European Union, in a referendum that Prime Minister David Cameron was forced by his party’s ultra-Eurosceptics in January 2013 to promise to conduct it, should the Conservative Party win a majority in the 2015 legislative election. This promise was then thought […]

Greece bailout programme: Full agreement after marathon negotiations on debt relief between IMF and Eurozone

The Finance ministers of the Eurozone met yesterday in Brussels to discuss mainly on the implementation of Greece’s ESM economic adjustment programme and have come to a final deal which will lead to the conclusion of the first review unlocking the second tranche of 10,3 billion euros. The Ministers gave a direct assignment to the […]

Greek citizens to pay the price again but Tsipras risks losing next elections

It was last Monday when the Eurogroup took place in Brussels to discuss about the Greek programme but no final decisions were made neither on the ESM’s programme first review nor on the debt relief. The Eurozone Finance Ministers decided though to come to an agreement at their next meeting on May 24, after the […]

Tsipras doesn’t seem to have learned his “almost Grexit” lesson and Greece faces again financial and political dead end

The teleconference of the EuroWorking Group which took place yesterday is the forerunner of the extraordinary meeting of the Finance Ministers of the Eurozone on May 9 where Greece’s programme review is about to be discussed. The outcome was, as expected, disappointing regarding the agreement between the two sides on the package of basic and […]

Who cares more about taxpayers? The US by being harsh on major banks or the EU still caressing them?

The world economy remains more or less motionless or even recedes six years after the financial meltdown, because the banking industry has not yet decided what’s best for its interests. Continue leveraging itself (borrowing) on central bank liquidity in a stagnating environment, or start deleveraging and send the world to another deep recession, if not […]