Articles on Eurozone

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German chancellor Angela Merkel and France’s new President Francois Hollande meet to discuss Europe’s economic woes. EPA/Rainer Jensen

Hollande and Merkel: breaking up is hard to do

Europe is in economic dire straits and the two most powerful economies on the continent are, at least on paper, led by individuals with considerable differences. The previous French President Nicolas Sarkozy…
Greek citizens took their frustration out on the ballot box this weekend. EPA/Orestis Panagiotou

Elections in Europe an assault on the austerity doctrine

The answer, even though they see over and over again that austerity leads to collapse of the economy, the answer over and over [from politicians] is more austerity. – Joseph Stiglitz, Asian Financial Forum…
The European Central Bank’s long-term refinancing operations have reduced acute liquidity problems in the banking sector, but the situation in the Eurozone remains fragile. AAP

The ECB’s long‑term refinancing operations: a solution to the debt crisis, or doomed to fail?

In November 2011, the Eurozone crisis reached a climax with interest rates on sovereign debt of Eurozone problem debtors soaring. Fear of sovereign defaults spilled over into the interbank markets as Eurozone…
Plans by Spain’s new conservative government to push through deep labour reform has provoked protests, as it struggles to tackle its soaring unemployment rate. AAP

Spain strikes against TINA, as the Eurozone watches on

Spain’s general strike last week has sent a clear message to other Eurozone countries about how challenging it may be to implement labour market reform. The strike was mostly peaceful, with the exception…
Not so funny…. Portugal is the next vulnerable Euro nation, but it doesn’t fit the German-favoured critique of a profligate country unwilling to undertake reforms. AAP

After the Greek rescue package: will Portugal be the next to fall?

Greece is rescued, for now…maybe. Perhaps it’s time to move on to the next basket case. So, which of the PIIGS is the next Greece? For the moment, Portugal looks to be the front-runner. The country’s public-debt-to-GDP…
Protests rocked Athens as Greek legislators voted to accept a tough austerity package. So what now for the Greek people? AAP

Austerity in, Euro out – is this Greece’s future?

As Greek politicians approved a tough austerity package amid fierce protests, one question dominates: is an orderly exit from the Eurozone available for Greece? And just what might be the consequences…
French leftists protest after Standard & Poor’s downgraded the country’s debt on Friday. AAP

After France’s downgrade, Europe’s debt cycle looks hard to break

Standard & Poor’s decision to downgrade the credit ratings of nine Eurozone countries, including Austria, France, Italy, Spain, and Portugal, is another symptom of the contagious and vicious debt cycle…
British Prime Minister David Cameron had no choice but to reject the EU plan and was right to do so. AAP

Why Cameron can’t afford to get fiscal with the EU

Last week’s EU Brussels summit produced a tentative fiscal compact, a mild boost of the European Financial Stability Facility’s (EFSF) reserves to €500 billion, and an acrimonious split between Britain…
Despite happy appearances, the two leaders disagree the way out of the Eurozone crisis. AAP

A make‑or‑break week: Can Sarkozy and Merkel save the euro?

What could be a decisive week for Europe and its common currency has begun, with the announcement of a package of fiscal austerity measures in Italy. Markets, European partners, and – perhaps above all…
The European Central Bank needs to start buying more bonds from Eurozone countries. Images_of_Money

With Italy stagnant, it’s time for drastic Euro intervention

The departure of Silvio Berlusconi does not seem to have eased the pressure on Italy, with reports suggesting the International Monetary Fund is reading a 600 billion euro emergency bailout for the Eurozone’s…
The eurozone crisis is moving beyond “spendthrift” countries in need of rescue, to the rescuers themselves. AAP

Heart of darkness – entering the Eurozone’s end game

Early this week, sovereign bonds spreads for France and other Euro-core countries peaked. Around noon on Tuesday the spreads on French and Austrian 10-year government bonds exceeded the German bund rate…
Angela Merkel and Nicolas Sarkozy must take drastic steps to maintain the legitimacy of EU institutions. AAP

It’s time for Europe to show some courage

The European Union is in crisis – yet again. If you enter “Europe in crisis” into Google, more than 655 million entries pop up. Europe’s current problems are being described as a Euro crisis – it is a…
Former EU commissioner Mario Monti will form government in Italy as Silvio Berlusconi exits. AAP

Here come the technocrats, to save the Eurozone

Is the Eurozone about to crash and burn, leaving Club Med in its wake? Not so fast. Reports have suggested that French President Nicolas Sarkozy and German Chancellor Angela Merkel have discussed a strategic…

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