asterisk2a + europeancommission   11

Europe Locks Out S
Yesterday we reported that instead of manipulating home price data, China would simply stop reporting it. Fast forward to today and a few thousand miles west where we get a comparable report, only this time involving an insolvent continent and a comprehension-challenged rating agency. Just released from S&P: "Following new European Union regulations on credit ratings, we are converting our issuer credit ratings on these sovereigns and the ECB to "unsolicited", as we do not have rating agreements with the rated entities. Standard & Poor's  will nonetheless continue to rate the seven sovereigns and the ECB, and classify the ratings as unsolicited, as we believe that we have access to sufficient public information of reliable quality to support our analysis and ongoing surveillance, and because we believe there is significant market interest in these unsolicited ratings. ..."
creditrating  Europe  2011  PIIGS  fiscal  policy  monetary  ECB  EuropeanCommission 
february 2011 by asterisk2a
Whrungskrise: Europa muss mehr Europa wagen - SPIEGEL ONLINE - Nachrichten - Wirtschaft
Die meisten Deutschen wissen, dass die schwarz-rot-goldene Kuscheligkeit vorbei ist. Eigentlich. Doch viele sehnen sich zurück in die Wohlfühlzone. Das hat auch mit der Früher-war-alles-besser-Nostalgie zu tun. Vor allem aber damit, dass die Bundesrepublik sich einst selbst genügte - und heute bei allen globalen Problemen mit drinhängt. Deutsche Soldaten kämpfen in Afghanistan gegen die Taliban. Fleißig-anspruchslose Chinesen machen anständigen schwäbischen Firmen die Weltmärkte streitig. Und Kanzlerin Angela Merkel muss mies wirtschaftende Griechen vor dem ökonomischen Kollaps retten.
angelamerkel  sarkozy  trichet  ecb  europeanunion  EuropeanCommission  2010  Euro  crisis  PIIGS  bailout  EFSF  EFSM 
december 2010 by asterisk2a
Trichet Calls for `Maximum' Flexibility of Aid Fund - Bloomberg
""Council member Ewald Nowotny said on Dec. 10 that
ECB buys bond, ECB needs money for that. That money is provided by the individual central banks from the EMU countries respective their size.""

""If Portugal and Spain needs help, EMU countries either have to expand the fund (EFSF) or prop up the ECB that they can buy up periphery bonds to dampen high rise bond spreads ... so that they can finance themselves at reasonable rate from the market.

- European central banks have been forced to take on “a whole range of extra risk” and may need more capital. Trichet said he has “no particular comment” on the topic. Vice President Vitor Constancio said on Dec. 10 that an increase of the rescue fund and more flexibility would be “helpful.”""
ECB  EFSF  EFSM  politics  europeanunion  EuropeanCommission  europe  EMU  Germany  trichet  2010 
december 2010 by asterisk2a
European Debt Crisis Is Shaped by Bond Vigilantes -
Disagreements among national governments have made it difficult to address the core problem, which, he said, is “not lack of liquidity, but of solvency” — that is, not a matter of providing enough cash for short-term operations, but of reducing debt ratios that are simply too high to be managed. Solving the problem anytime soon would require “haircuts” — write-downs or restructurings, in which bondholders would, in the end, have to take some losses.
sovereign  debt  PIIGS  monetary  fiscal  policy  ecb  trichet  greece  ireland  2010  response  politics  angelamerkel  EMU  EuropeanCommission  europe  herding  herd  crisis 
december 2010 by asterisk2a
Lehren aus der Schuldenkrise: Trichet warnt vor EU-Vertragsnderung |
ein neuer Rettungsschirm für Euro-Länder im Vertragswerk verankert werden. Auch private Investoren sollen an den Kosten beteiligt werden. Der EZB-Präsident warnt im Kreis der EU-Staats- und Regierungschefs: Anleger könnten im Gegenzug deutlich höhere Zinsen verlangen.

Deutschland und Frankreich wollen erreichen, dass private Anleihegläubiger und Investoren stärker an den Kosten solcher Rettungsaktionen beteiligt werden. Damit sollen die Steuerzahler entlastet werden, die zum Beispiel einen Großteil der Hilfen für Griechenland stemmen.

warnte Trichet die Staats- und Regierungschefs am Donnerstag jedoch vor einem solchen Schritt. Die Anleihemärkte könnten aufgeschreckt werden, wenn die Politik ihnen das Signal gebe, sie könnten bei Umschuldungen stärker belastet werden, Investoren würden dann höhere Zinsen von Ländern wiePIIGS verlangen, die ohnehin um das Vertrauen der Märkte kämpfen müssen.
EFSF  trichet  ECB  EMU  EuropeanCommission  europeanunion  2010  bailout  PIIGS  sovereign  debt 
october 2010 by asterisk2a
European Union Plans System for National Debt Crises -
European leaders tried to bridge the differences over how to structure a new rescue mechanism. Determined to include the principle of moral hazard, Germany, Europe’s biggest economy, is actively pushing for a system in which bondholders would absorb some of the risk.

But Mr. Trichet argued that such a system would scare investors and drive up short-term borrowing costs for weaker nations, thus endangering their recovery.

“The president of the European Central Bank has the view that he wants to do everything to ensure that markets take a calm view of the euro zone,” she said. “We are also interested in that, but we also have to keep in mind our people, who have a justified desire to see that it’s not just taxpayers who are on the hook, but also private investors.”

“I don’t quite share Jean-Claude Trichet’s concern,” she added.

The toughest task now falls to the European Commission, which must create the new, permanent rescue mechanism to deal with sovereign debt emergencies.
EMU  reform  2010  europeanunion  EuropeanCommission  sovereign  debt  PIIGS  bailout 
october 2010 by asterisk2a
The future of Europe: Staring into the abyss | The Economist
While still grumbling about unfounded rumours in financial markets (and he has a point), a more realistic Mr Zapatero argued: “There is nothing better than transparency to demonstrate solvency.”

Mr Zapatero reversed course, announcing civil-service pay cuts and other austerity measures. He unveiled a (modest) plan to ease Spain’s rigid labour laws, which make older workers almost unsackable, leaving young and immigrant workers on temporary contracts to take the pain when Spain’s property-led boom turned to bust. At 40%, youth unemployment in Spain is not just high; it is a moral indictment of an entire system.

Between 2005 and 2030 the working-age population of the European Union will shrink by 20m, and the number of those over 65 will increase by 40m.
Europe draws the right lessons from this crisis. An open, flexible, competitive EU offers Europeans the best chance of confronting globalisation.
Big choices loom.
Europe  EMU  june  july  2010  transparency  EuropeanCommission  europeanunion  eurozone  spain  aging  demographics  pension  structure  demography  greece  PIIGS  germany  france 
july 2010 by asterisk2a
Europe’s New Approach to Biotech Food -
On Tuesday, the European Commission will formally propose giving back to national and local governments the freedom to decide whether to grow crops that many Europeans still call Frankenfoods.
EuropeanCommission  europeanunion  politics  geneticallyengineered  food  regulation 
july 2010 by asterisk2a
Schuldenkrise in Europa: Joseph Stiglitz - Wie der Euro noch zu retten ist |
Joseph Stiglitz
monetary policy wichtiges konjunktursteuerndes Instrument verloren.
Robert Mundell - Arbeitnehmerfreizügigkeit hat einen gemeinsamen Arbeitsmarkt geschaffen, aber sprachliche und kulturelle Barrieren machen eine Mobilität der Arbeitskräfte im amerikanischen Stil undenkbar.
Solidaritaet - Länder, deren Defizite infolge der globalen Rezession in die Höhe geschossen sind, sollten nicht in eine Todesspirale gezwungen werden - wie Argentinien vor einem Jahrzehnt.
Lösungsvorschlag für diese Länder ist, das Äquivalent einer Währungsabwertung vorzunehmen - eine einheitliche Lohnsenkung. Das ist meiner Meinung nach unmöglich. Die Folgen für den Einzelnen sind nicht vertretbar, die sozialen Spannungen wären gewaltig. Ein Hirngespinst.
- Austritt Deutschlands aus der Euro-Zone oder die Teilung der Euro-Zone in 2 Unterregionen.
- vielversprechendste dritte: die Art von institutionellen Reformen - fiskalpolitischer Rahmen.
JosephStiglitz  fiscal  policy  speculation  speculator  greece  may  april  2010  germany  ECB  EMU  europeanunion  EuropeanCommission  europe  eurozone 
may 2010 by asterisk2a
Euro Zone Grapples With Debt Crisis -
Even the staunchest optimists in Brussels and Frankfurt see a rocky process, with rating firms poised for more downgrades and bond markets meting out daily judgment

Greece and Spain saw their ratings downgraded. Ireland and Portugal have been warned they could be next. Even broader downgrades threaten if other European governments don't shape up.

Budget deficits for the region as whole in 2009 swelled to 6.4% of gross domestic product from 2% the year before. The EU forecast sees that gap widening to nearly 7% in 2010 before the worst is over.

By contrast, Germany and France will increase spending to add fresh fiscal stimulus in 2010, in France's case swelling its budget gap to more than 8% of GDP next year, according to EU projections. The concern in Berlin and Paris is that rising unemployment, a lagging indicator that continues to rise in the early stages of recovery, will do enough to limit domestic demand without the governments also turning off the taps too early.
debt  europe  euro  recession  recovery  2010  2011  bubble  crisis  poland  Portugal  spain  ireland  uk  rating  greece  Brussels  europeanunion  ECB  interestrate  EuropeanCommission 
january 2010 by asterisk2a

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