Articles on Sovereign debt

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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…
Westpac chief Gail Kelly has warned about “the contagion effect” from Europe.

The contagion effect: how much will Australian banks be buffeted by Europe?

Westpac chief executive Gail Kelly this week warned about Australian banks are vulnerable to “the contagion effect” of Europe’s ongoing financial woes, after the Commonwealth Bank of Australia delayed…
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…
Italy’s debt woes will not disappear after Berlusconi finally steps down. AAP

As the Eurozone teeters, Italy has no time to waste

Global markets have tumbled in the past 24 hours on fears over Italy’s worsening debt crisis, with media reports that Germany and France have begun talks to break up the Eurozone if the monetary union’s…
Berlusconi’s resignation is one step towards solving Italy’s debt crisis – but many more are needed. AAP

Berlusconi’s going, but there’s no Silvio bullet for Italy’s debt

Italy’s sovereign debt crisis has been overshadowed by Prime Minister Silvio Berlusconi’s reluctant promise to resign after the country’s parliament made clear he no longer commanded a majority. Italy…
Italian Prime Minister Silvio Berlusconi has said he will resign after losing parliamentary support. AAP

As Berlusconi exits, is democratic reform the next real step for Europe?

Italian Prime Minister Silvio Berlusconi appears set to become the largest political casualty so far of the Eurozone’s continuing inability to resolve its massive sovereign debt problems. Berlusconi, who…
Greek Prime Minister George Papandreou will use the referendum to try to win a mandate for austerity measures. AAP

Pain or more pain? The political gamble behind Greece’s debt referendum

Greek Prime Minister George Papandreou has taken the bold step of planning a referendum on the country’s EU-imposed austerity measures, in a bid to claim a mandate for his efforts to avoid a default on…
All Blacks captain Richie McCaw and coach Graham Henry celebrate their Rugby World Cup victory. AAP

Let NZ savour its World Cup win – Australia is still the economic champion

Few would begrudge New Zealanders revelling in their rugby World Cup success. After two major disasters in the form of the Christchurch earthquake and the Greymouth coal mine explosion, some morale-raising…
Is a partial default one of the steps to recovery for Greece? AAP

Defend or default? It’s the three trillion euro question

Will Greece default and exit the Eurozone? The best-case scenario is a managed, orderly, partial default with the European Financial Stability Facility (EFSF), a fund created in 2010 to manage Eurozone…
World Bank chief Robert Zoellick and IMF head Christine Lagarde have doubts about global growth. AAP

Spooking the markets: should financial leaders keep quiet during crises?

Global markets have tumbled again this week, following the downgrading of Italy’s debt rating and a series of negative comments from leaders of the world’s financial institutions. International Monetary…
If Greece’s economy collapses, it could easily lead to a breakdown of civil order. AAP

What will happen if Greece defaults?

Global markets look set for a rough week amid new concerns that Greece could default on its massive debt. The Australian share market has spent most of the day down 3% after reports that Germany could…
The only way out of this crisis is to dishonour some of the debt that is weighing down the global economy. AAP

Ireland, Greece … France? Accepting default is Europe’s only option

The dramatic falls in share prices of Greek debt-laden French banks overnight highlights just how closely tied the current market chaos is to the world’s worsening debt woes. Market crashes like that of…
Silvio Berlusconi has blamed international economic conditions for Italy’s worsening crisis. AAP

As Italy’s debt crisis deepens, is Berlusconi turning a blind eye?

Italian Prime Minister Silvio Berlusconi’s reassurance to his parliamentary colleagues during a speech on Wednesday did little allay about fears of a crisis in Eurozone’s third-biggest economy. The Italian…

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