Extra mild ECB tapering of QE and zero interest rates keep euro low

Last Thursday, Mario Draghi, the President of the European Central Bank performed again his superb balancing act, between the needs of the South and the demands of the North. He led the Governing Council of ECB, Eurozone’s most powerful body, to map the exit road from the extraordinary monetary measures (Quantitative Easing) state as frictionlessly […]

The ECB accuses the politicians of inaction, continues injecting billions to banks

Last Saturday 8 July the Belgian newspaper De Standaard published an interview with Peter Praet, Member of the Executive Board and chief economist of the European Central Bank. Praet said it plainly “We do say that we still need a long period of accommodative policy before we are ready”. What he means by ‘being ready’ […]

Trump to subject the Fed, challenge the ECB and make Wall St. bankers even richer

It’s obvious by now that the European Central Bank and its President Mario Draghi are following a diametrically opposite monetary policy than the American central bank, the famous FeD. Both Draghi and ECB Vice President Vítor Constâncio have loudly reassured everybody that the Eurozone’s central bank will continue injecting €60 to €80 billion a month […]

ECB steadily continues monetary easing policy as EU economy gains momentum

European Central Bank – Press Conference Vítor Constâncio, Vice-President of the ECB, Mario Draghi President of ECB and Christine Graeff, Director General Communications (from left to right). Location: Frankfurt . Date: 09/03/2017 © ECB, 2017 / Source: ECB – Audiovisual Service It was last Thursday when the president of the European Central Bank gave a […]

Germany and Europe prepare for Trump’s America

Germany, and more generally the EU, is now preparing in earnest to confront the groundbreaking changes in their relations with Trump’s America. Last week, both the German Chancellor Angela Merkel and her Federal minister for Finance Wolfgang Schauble, made direct and indirect statements about the policies now needed for Germany and the European Union. On […]

ECB: The bastion of effective and equitable Europeanism keeps up quantitative easing

Last Thursday, 12 December, Mario Draghi, President of the European Central Bank, was forced to compromise with the Germans during the Governing Council’s regular meeting. He accepted to reduce the monthly injections of cash into the economy (through asset purchases of mainly government bonds) from €80 billion to €60bn, along the lines of the nonstandard […]

Brexit mission impossible: Theresa May was so desperate that had to appoint Boris Johnson as Foreign Secretary

It’s been only three weeks since the EU referendum and Britain seems to be already changing dramatically. Theresa May has already become the second woman Prime Minister in the UK’s history after Margaret Thatcher and following the resignation of David Cameron last Wednesday. The Former Home Affairs Secretary has started now forming the new government in the […]

Eurozone’s central bank leadership prepares for shoddier prospects

It has become commonplace to state that the European economy still doesn’t fare well after six years of recession or practical stagnation. For good reasons however in the past few days the horizon looked particularly darkened. Negative statistical evidence and meandering statements by key people are indicative of that. Inflation or rather disinflation statistics, persistently […]

Why the ECB had to clarify it caters for the entire Eurozone not just Germany?

Last Thursday morning this newspaper concluded that the “only EU institution with true European motives and vision remains the European Central Bank of Mario Draghi”. Just some hours later in that Thursday afternoon the European Sting was confirmed one hundred percent by Mario Draghi, the President of ECB, who said that “We have a mandate […]

Does Draghi have another ace up his sleeve given his Quantitative Easing failure?

Last Monday Eurostat, the statistical service of the European Union, released a flash estimate for euro area annual inflation revealing a -0,2% inflation rate for February. The latter has worried the European Central Bank’s (ECB) officials and especially its president Mario Draghi. ECB’s Governing Council meeting which is taking place next week will have to reconsider […]

What have the banks done to the markets making them unable to bear cheap oil?

Last Tuesday, a new steep fall of the price of crude oil by almost 5%, triggered another selloff in all the major capital markets of the world. The New York and the European stock exchanges lost anything between 2% and 3% of their capitalization. One may observe that this development is one of many of […]

Can the next financial crisis be avoided?

The descent of prices in the world capital markets continued almost unhindered this past week and only last Friday financial, oil and commodity values gained some limited grounds. Altogether however, the major stock markets have erased trillions off their capitalization since last June, when the dark clouds gathered above the Chinese mega-cities of Shanghai and […]

European Court rules that ECB’s OMT program of 2012 is OK; not a word from Germany about returning the Greek 2010 courtesy

Last Tuesday 16 June the European Court of Justice issued a historic decision ruling that Mario Draghi was legally correct when on 26 July 2012 speaking at the Global Investment Conference in London said the famous phrase, “…the ECB is ready to do whatever it takes to preserve the euro. And believe me, it will […]

Greece lost a month that cannot be found neither in “mini Summits” nor in Berlin

It has been one long month since the Greek deal on the Eurogroup of 20 February where Greece and the rest of the Eurozone agreed to give to the former a four-month extension of the loan agreement. However, the Greek government does not seem to cooperate with the three institutions (ECB, IMF, EU) to actively and urgently […]

Juncker’s Investment Plan in desperate need for trust and funds from public and private investors

Last Tuesday the EU Finance ministers gathered in Brussels to decide for the fate of Juncker’s Investments Plan. The news is quite promising for EU Investments since all ministers agreed to support this Plan by setting up the European Fund for Strategic Investments (EFSI). Italy also announced its contribution by pledging to invest 8 billion […]

D-Day for Grexit is today and not Friday; Super Mario is likely to kill the Greek banks still today

Today is really the D-Day for the Greek matter. After a couple of moves in this grand chessboard, checkmate is just unavoidable. Today we are likely to reach a point without return where nobody will be able to save Greece from collapse and the Eurozone from breaking down. It is the great final round and […]

ECB’s €1.14 trillion again unifies Eurozone; Germany approves sovereign debt risks to be pooled

The long-awaited move of the European Central Bank finally came yesterday afternoon. Mario Draghi announced from ECB’s Press room in the Frankfurt tower that the Eurosystem, the central banking system of the euro area, will purchase bonds issued by governments and other European institutions at a rate of around €60 billion a month. Obviously the […]

Why Eurozone urgently needs the ECB to print and distribute at least €500 billion

Next Thursday 22 January the European Central Bank is expected to announce its new extraordinary monetary program (quantitative easing), under which the central bank or the 19 member state national central banks will buy up to 20%-25% of Eurozone’s government debt. According to Eurostat, the government consolidated gross debt is around €9 trillion. Theoretically then […]

Are ECB’s €500 billion enough to revive Eurozone? Will the banks pass it to the real economy?

The major indicators that an economy is in recession and probably heading to something worse like a crisis, are falling prices and crumbling wages. Eurozone suffers of both of them. According to Eurostat, the EU statistical service, the annual growth of labour cost dropped in the euro area to 1.3% during the third quarter of […]

The financial war touches Frankfurt and Berlin

Early next year the world is going to watch the culmination of the battle between Mario Draghi the President of the European Central Bank in Frankfurt am Main and Wolfgang Schäuble, the powerful German Minister of Finance based in Berlin. In this affair Draghi represents the will of the advanced world financial markets, including the […]

Draghi: printing a full extra trillion non negotiable to help all borrow cheaply

European Central Bank President Mario Draghi speaking at the economic and monetary affairs Committee of the European Parliament last Monday, made at least two direct references to additional monetary measures, to confront the anaemic economic conditions in Eurozone, “if warranted to achieve price stability over the medium term”. He referred to this prospect once while […]

Five-year low inflation for Eurozone and now Mario has to finally wake up the Germans

The European Central Bank’s (ECB) governing council is gathering today in Naples to discuss the monetary policy just two days after the publication of the flash estimate of the annual inflation of the Euro area by Eurostat, the statistical office of the European Union. The inflation is expected to be 0.3% in September, a 0.1% […]

Will ECB win against low inflation by not following Quantitave Easing?

On the 5th of June, the European Central Bank (ECB) decided not to fully deploy all the tools of Quantitative Easing (QE) programme, which showed that the ECB is not yet ready to risk everything in order to deal with low growth and inflation rates. Christine Lagarde, Managing Director of the International Monetary Fund (IMF) […]

ECB bets billions on Eurozone’s economic recovery

Last Wednesday, one day ahead of the regular monthly meeting of European Central Bank’s Governing Council, Eurostat, the EU statistical service, published a Press release on Eurozone’s near zero economic growth. The relevant passage of that text went like this, “Seasonally adjusted GDP rose by 0.2% in the euro area (EA18) and by 0.3% in […]

Quantitative easing: how Mario can tackle low inflation in Eurozone

One of the major issues that the European Central Bank (ECB) struggles to solve is low inflation. It seems that it is not even close to the target that has been set; a rate of below but close to 2% over the medium term. April’s inflation data indicated a 0.7% inflation rate, a percentage not far away […]

The ECB will do whatever it takes to set the Eurozone economy again in motion

Benoît Cœuré, Member of the Executive Board of the ECB, speaking at the high-level conference on “Monetary Policy in the New Normal” organised by the IMF in Washington D.C., on 13 April 2014, described in detail the unconventional monetary policy tools the Eurozone’s central bank is about to use, in order to affect (reduce) interest […]

Eurozone set to abandon monetary and incomes austerity and adopt growth friendly policies

Finally, the European Central Bank’s Governing Council unanimously agreed yesterday to use extraordinary monetary measures to support growth in Eurozone and to counter a possible further fall of inflation rate towards the negative deflation region. To this effect, the ECB stopped just one step short from taking unconventional monetary measures, but the fact that its […]