April 25, 2012
These are very worrying times for the euro zone. The ECB’s LTRO (long-term refinancing operation) in November and February, which made available €1trn in 1% funding to more than 800 European banks over a three-year timeframe, brought a temporary respite to the woes besetting the region. But the past few weeks have seen an escalation in the crisis. If there is a natural evolution to this crisis – then it has reached the stage of political legitimacy.
February 01, 2012
Twenty five EU leaders have negotiated a fiscal compact through an inter-governmental agreement in an effort to halt the deepening banking and debt crisis sweeping the region.
January 23, 2012
With the ECB remaining staunchly opposed to Eurobonds and the German government determined to get a fiscal compact written into member state's constitutions, who will blink first at the next EU summit?
December 14, 2011
The latest EU summit came and went without convincing anybody that there is enough on the table to solve the debt/financial crisis sweeping the region. That is not too say that what was proposed isn’t a step in the right direct.
November 11, 2011
If there was any doubt in the past that treaty change is needed if the euro zone is to survive, the spike in Italian bond yields above the critical 7% mark represents the Rubicon from which there is no return. Italian yields may have crept back down into the relative safety of sub 7% in recent trading, but the markets have made a huge statement. The third largest economy in the euro zone and at €1.8trn, the third largest debt market in the world, Italy is now in play. How long can it be before France is confronted with a soaring cost of funding that may escalate into something much worse?