Recession Replaces Debt as Top EU Worry Amid Joblessness
The EU is realizing that collapsing economies can’t pay what is owed.
European leaders are loosening the economic shackles once demanded by Germany as the recession and mounting unemployment in southern Europe shove aside the debt crisis as the euro area’s biggest headache.
A two-day Brussels summit starting today will endorse plans for “structural” assessments of national budgets, according to a draft statement, using code for granting countries such asFrance, Spain and [...]
from FT:
Washington’s gamesmanship over the fiscal cliff raises a critical question: Does the US have budget rules and processes that are adequate for the nation’s looming crisis?
It does not — but today’s 100th anniversary of the 16th amendment to the US Constitution offers a reminder that the republic was designed to adapt to such challenges. Read more
MATTHEW DALTON
online.wsj.com
October 9, 2012
France, Spain and several other euro-zone governments won’t hit budget deficit targets agreed to with European authorities, the International Monetary Fund said Tuesday, setting the stage for a contentious debate over whether the governments should pursue more cuts or allow the targets to slip.
Governments across the European Union have been slashing spending and raising taxes to bring their deficits back in line with the bloc’s budget rules, [...]
Gareth Jones and Stephen Brown
Reuters
June 30, 2012
Germany’s parliament resoundingly approved the euro zone’s permanent bailout scheme and new budget rules on Friday, but legal hurdles remain and Chancellor Angela Merkel’s concessions to euro zone partners Italy and Spain may make those harder to overcome.
The outcome of the vote was never seriously in doubt after opposition parties agreed to back the budget rules, or “fiscal compact”, in return for growth and [...]
RT
Germany’s top court has ruled that Angela Merkel’s government did not properly consult parliament on setting up the eurozone’s permanent bailout scheme. However the ruling is not expected to delay the scheme’s ratification by Germany.
The Constitutional Court stated MPs had not been informed early enough when the permanent EU bailout fund was set up.
Chancellor Angela Merkel went ahead with her plan for tighter eurozone budget rules without informing MPs sufficiently, [...]
The situation continues to get worse..
Irish to vote on fiscal treaty
10:30am: The referendum could block Ireland from future bailout loans if voters reject the package of more stringent budget rules. More
More pain in Spain hits world markets
7:53am: Stocks fall in Europe and Asia, the euro slips to a fresh two-year low against the dollar and Spain’s borrowing costs jump to six-month highs. More
Spanish banking woes threaten Europe
May 25: A massive bailout of Spanish banks is [...]
* EU finmins prepare to freeze development funds for Hungary
* OECD sees economic contraction, urges new fiscal measures
* Report criticises Hungarian cbank law, other unconventional reforms
* Says further fiscal consolidation could create room for rate cuts
By Krisztina Than and Robin Emmott
BUDAPEST/BRUSSELS, March 13 (Reuters) – The European Union prepared to freeze half a billion euros in aid to Hungary on Tuesday, for the first time punishing a member state for flouting [...]
From Bloomberg:
German Chancellor Angela Merkel and French President Nicolas Sarkozy plan to drive forward their agenda for stricter budget rules as they seek to craft a master plan for rescuing the euro over the next three months.
The euro rose as the two leaders met in Berlin to flesh out a rulebook for budgetary discipline negotiated at a Dec. 9 summit that seeks to create a “fiscal compact” for the 17- member euro [...]
by Saxplayer00o1
1929-33 depression was the same—numerous rallies. Everyone was buying because they knew the market will go up and there was few or no sellers in the market. It was a crisis warning.
Remember how they said wallstreet rallied as mainstreet tanked.
Could never understand that–now I do.
Prepare for the crash.
1) Zero interest rates back in Japan
“TOKYO — Japan’s central bank cut its key interest rate to virtually zero [...]
http://thehill.com/blogs/on-the-money/budget/92237-house-has-passed-budget-resolution-every-year-since-budget-act-according-to-study
Skipping a budget resolution this year, a move House Democrats are considering, would be unprecedented.
The House has never failed to pass an annual budget resolution since the current budget rules were put into place in 1974, according to a Congressional Research Service report. The budget resolution is a non-binding document whose main purposes are to set discretionary spending caps for the coming fiscal year, lay out the framework of the [...]
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