European Crisis

More trouble in the eurozone? You can bank on it

The woes of Portuguese bank Banco Espirito Santo have renewed fears about the structural weaknesses of the European banking system, which will remain a source of vulnerability until the ECB takes definitive action.

A delicate rate balancing act for the BoE

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Solid economic growth and a heated property market mean the Bank of England is under mounting pressure to raise interest rates. But several factors are complicating matters.

The welfare state is enslaving European workers

The redistributive state in Europe is creating a big wedge between gross and net incomes. It's unpleasant for taxpayers and highlights the enormous challenge facing policymakers in ageing societies.

Draghi seeks more integration

ECB president calls for a new set of rules for eurozone members on economic reforms.

EU leaders in tussle over budget

by AFP
Leaders from struggling eurozone economies are keen to loosen strict EU budget rules.

IMF wants more action on recovery

by AFP
Christine Lagarde warns more must be done to boost international monetary supply.

The method behind Germany's policy muddle

Germany's approach to stewardship of the eurozone may appear confusing, but it could prove an unlikely stepping stone towards a more perfect euro union.

European austerity failed, but what comes next may be worse

Implementing Germany's 2003 reform agenda won't solve Italy's economic woes. Such a move is likely to increase already-high levels of public debt and compound the region's problems.

Top economies contract in Q1

by AFP
Slight rise on personal consumption not enough to convince corporates to spend: OECD.

ECB prepared to go unconventional if necessary: Draghi

Europe keeps interest rates on hold and maintains inflation remains a focus.

BoE reveals eurozone crisis warning

by AFP
In 2011 the UK central bank cautioned on high risk of more bank bailouts.

Europe takes a battering for Brussels' stability and growth delusions

For Southern Europe to climb out of its Great Depression, Brussels needs to admit defeat and finally abandon its foolish policy of trying to eliminate government deficits at any cost.

ECB sees no acute deflation risk

by AFP
European Central Bank still confident of avoiding deflation in eurozone.

Moscow warns over Ukraine-EU deal

by AAP
Russia argues the agreements threaten its domestic producers; may take retaliatory trade steps.

The fallout from Merkel's waning power

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For the first time, Angela Merkel doesn't have the ability to control developments in Europe. This is bad news for her, but it's even worse news for Europe.

Why Europe's austerity experiment is doomed to fail

The bureaucrats in Brussels are convinced austerity will get Europe back on track. But comparing Greece’s experience to that of the US, it’s clear that these measures just compound the problem by forcing the private sector to deleverage further.

ECB to keep rates at record low until 2016: report

ECB Governing Council member Ewald Nowotny hints rates will be untouched for 18 months.

Euro zone consumer confidence little changed

News of ECB market support helps keep confidence from slipping.

EU gives six states clean bill of health

by AFP
Austria, Belgium, Netherlands amongst nations with deficits back under control.

Euro zone current account surplus widens in April

Goods book €16.9bn surplus; services €10bn in surplus.