Greece faces a very European problem: Are woes fault of Eurozone designers as much as Greek policymakers? June 18, 2015 Greece's economy is a shadow of its former self. It once had thriving investment banks which attracted cash from all over the world and invested it predominantly in the Balkans, helping countries there to thrive after the collapse of the Soviet Union. These operations are no longer. Its economy produces 30 per cent less [...]
Don’t bank on Greece giving in: The Eurozone has far more to lose than it thinks June 18, 2015 Every good story has its dark moment, a crisis that comes before a resolution. The Greek debt saga appears to be reaching such a crunch point. Both sides are refusing to compromise further and are insisting the other is to blame, while Greece’s impossible IMF repayment at the end of the month looms. But amid [...]
Eurozone inflation rises 0.3 per cent in May June 17, 2015 Eurozone inflation rose 0.3 per cent in the year to May a second estimate released today by statistics agency Eurostat has shown, in line with economists' expectations, and up from zero in April. The largest prices increases came from vegetables which rose 0.09 per cent, restaurants and cafes which increased 0.08 per cent and tobacco [...]
With no deal on the cards, would the Eurozone be able to contain contagion from Greek exit? June 14, 2015 Dr Holger Schmieding, chief economist at Berenberg, says Yes. The Eurozone won’t let the turmoil of 2011-2012 happen again. It has spent the last three years strengthening its defences against contagion risks. Systemic contagion through sovereign bond markets is now highly unlikely. Investors know that the European Central Bank is the reliable buyer of last [...]
The Eurozone will collapse without Greece – Tsipras June 9, 2015 The Eurozone will fall apart if Greece leaves, according to Greek Prime Minister Alexis Tsipras. Tsipras said a Grexit would be “the beginning of the end” for the Eurozone, saying markets would be spooked and would begin looking for a new weakest link. His comments come a day after Angela Merkel warned Greece was running [...]
UK trade deficit narrows to 13-month low as Eurozone GDP growth sticks at 0.4 per cent June 9, 2015 The UK's trade deficit – the gap between its imports and exports – narrowed to its smallest in 13 months in April, figures published today showed. The deficit more than halved to £1.2bn in April, compared with £3.1bn in March. Total exports rose 1.2 per cent between March and April, while imports fell 3.1 per [...]
Global turbulence to rock UK: Trouble in the Eurozone, Fed rate hikes and a Chinese slowdown could hit markets June 8, 2015 Yesterday, the Confederation of British Industry (CBI) revised its UK economic growth forecasts to 2.4 per cent and 2.5 per cent for 2015 and 2016 respectively, down from 2.7 per cent and 2.6 per cent. It wasn’t troubles at home that concerned the business organisation. The CBI cited economic instability in Greece, a sluggish Eurozone, [...]
As the Greek saga continues, can only fiscal integration secure the Eurozone’s future? June 4, 2015 Lydia Prieg, a PhD student at the University of Cambridge, says Yes Greater fiscal union is the only sustainable solution for the Eurozone. Without coordinated redistribution, some countries are enjoying artificially low exchange and interest rates. This boosts exports and growth. Other countries have inappropriately high exchange and interest rates, which hinder exports and growth. [...]
Eurozone economic recovery struggling to gain momentum as unemployment remains high June 3, 2015 Unemployment in the currency bloc was still high at 11.1 per cent in April The Eurozone economy is gradually improving but its recovery is failing to build on a solid start to the year, figures published yesterday show. The rate of joblessness in the Eurozone edged down in April, marking 24 months of [...]
With no deal on the cards, is the Eurozone too complacent about the risks Grexit poses? May 31, 2015 Guy Foster, group head of research at Brewin Dolphin, says Yes. It’s difficult to tell how complacent the Eurogroup really is about the risks of Grexit, as its rhetoric forms part of the negotiations. Both parties are citing a Grexit as their best alternative to a negotiated agreement. Their respective hands are strengthened as it [...]