A failed plan to tax the rich at 75 percent. A glaring lack of global competitiveness. Famous actors trading in their French citizenship for Russian to avoid paying high tax rates. The news from Paris as of late has been a bit sensational, but also dire. Could France be the first northern country in the European Union to confront potential economic demise in 2013? Perhaps that assessment is not unlike [...]
Greece will have to introduce another one hundred and fifty economic reforms to please its international creditors. That’s according to a leaked report from its lenders. Greece has been locked in talks with the Troika for weeks over the crucial austerity package it would need to introduce to be saved from bankruptcy by mid-November. RT talks to Johan Van Overtveldt, editor-in-chief of Trends business magazine.
RT LIVE http://rt.com/on-air
Subscribe to RT! http://www.youtube.com/subscription_center?add_user=RussiaToday
Like us on [...]
Mario Draghi’s plan to save the euro is about to get a test run. Spanish Prime Minister Mariano Rajoy appears ready to accept—perhaps not immediately, but soon—the European Central Bank president’s offer of a deal, in which the bank would buy up Spanish government debt in exchange for promised austerity and economic reforms. Investors seem persuaded that a bailout is at hand: The returns they’re demanding on Spanish bonds have [...]
Spain just unveiled its 2013 budget to Europe and the world.
The reason everyone is watching: at this point, Spain submitting a bailout request to EU and ECB lenders is seen as the next big step in the euro crisis now that the ECB has laid out its bond-buying plan to help distressed euro-area member states contain funding costs.
The catch is that Spain has to meet political preconditions in order to qualify [...]
Euro-zone Sept. composite PMI hits 39-month low
Atwater, California mulls fiscal emergency, bankruptcy
Six million will pay health law penalty: study
California May See More Bankruptcies, Chiang Says
Fed’s Fisher Says U.S. Inflation Expectations Rising
In Spain, economic crisis fans Catalan separatism
India hit by national strike over economic reforms
Italy slashes growth outlook, hikes deficit, debt goals
Worldwide, political leaders are putting off the economic reforms needed to avoid a painful, if not catastrophic, endgame. But, as everyone kicks the can down the road, the can is getting heavier and, in the major emerging markets and advanced economies alike, is quickly approaching a brick wall.
PARIS – Financial markets have rallied since July on the hope that the global economic and geopolitical outlook will not worsen, or, if [...]
Many feel that Greece’s fate, including its continued membership of the eurozone, rests in the hands of the Troika – officials from the European Commission, European Central Bank and the International Monetary Fund charged with evaluating Greek’s reform efforts, its financing needs and how they should be met. But this is not the entire story by any means.
The country’s fate is also closely linked to what happens in Italy and Spain, and [...]
German newspaper Handelsblatt reports that seven members of the ECB’s Governing Council initially opposed President Mario Draghi’s plan to buy sovereign bonds in the open market, according to Marketwatch.
Draghi outlined the ECB’s intent to step into the bond markets and purchase sovereign bonds in distressed countries like Italy and Spain in a press conference yesterday, although he also suggested an unwillingness to do so until EU leaders came to an agreement on [...]
Per google translate:
Doubts about whether the Greek government managed to convince the inspectors Troika able to restore the fiscal consolidation program on track to deliver today’s article in British magazine «Ecomomist».
“Greece has only two weeks to convince lenders that can bring back on track economic reforms”, typically referred to journal article.
If the new plans to launch in Athens spending cuts amounting to EUR 14.5 billion over the next two years [...]
As if we need any more proof that reckless spending and high taxes impede economic growth, CNBC’s new survey, America’s Top State for Business, is an indictment of progressive economic policy. It finds that Texas – for the third time in five years — is the most accommodating state for business. And it’s no mystery why.
We already knew that Texas, which, over the years has instituted a number of free-market economic [...]
From the European Union business website …
*** 07 July 2012 — Romania’s president IMPEACHED
*** 07 July 2012 — Greece seeks more time to meet bailout terms
(ATHENS) – Greek Prime Minister Antonis Samaras on Friday asked EU-IMF creditors for more time for a tough bailout programme, to ease the pain on an economy.
*** 07 July 2012 — NO NEW AID for Greece until it implements reforms: EU source
(BRUSSELS) – Greece will [...]
Pleas from Spain and Italy for urgent financial aid from the eurozone to bring down borrowing costs were dismissed by Angela Merkel as divisions hardened on the eve of a critical summit.
Germany’s Chancellor angrily rejected desperate pleading by Italy and Spain as a Franco-German rift over eurozone debt sharing threatened to unravel efforts to find a fix for the single currency at a meeting of European leaders on Thursday.
Before flying [...]
The question of whether conflict between US and China is inevitable is among the most important for the world as the US-China relationship, as JPMorgan’s Michael Cembalest notes, is likely to be one of the most important issues of the 21st century. The inevitability view is sometimes explained by the thesis that countries rarely rise economically without also doing so militarily. The chart below looks at the major economic powers of the [...]
Sunday, June 10, 2012
Well that didn’t take long. The ink on the #Spailout is not dry yet (well technically there is no ink, because none of the actual details of the Spanish banking system rescue are even remotely known, and likely won’t be because when it comes to answering where the money comes from there simply is no answer) and we already have an answer to one of our questions.
Recall that mere hours ago we [...]
AFP - Ireland wants to renegotiate its rescue plan to benefit from the same treatment as Spain, which looks set to win a bailout for its banks without any broader economic reforms in return, European sources said on Saturday.
“Ireland raised two issues: one is the need to ensure parity of the deal with Spain retroactively on its bailout from EFSF,” one European government source told AFP, referring to the temporary rescue [...]
A deal is in the works that would allow Spain to recapitalize its stricken banks with aid from its European partners but avoid the embarrassment of having to adopt new economic reforms imposed from the outside, German officials say.
While Berlin remains firm in its rejection of Spain’s calls for Europe’s rescue funds to lend directly to its banks, the officials said that if Madrid put in a formal aid request, [...]
France May Have Elected François Hollande, But She Really Needs A Napoleon Bonaparte By Tim Stanley May 6th, 2012
Hollande is the latest in a long line of French politicians to exploit the mob. It looks like Socialist François Hollande has won the French presidency. His platform: raise taxes on business to fund a lower retirement age and more spending. Things don’t look good for poor old France. Either Hollande will [...]
Greece would face a disorderly and costly exit from the euro area without financial support from international lenders, the IMF said on Friday.
A day after the IMF approved a 28 billion euro (US$36.9 billion) bailout loan for Greece, part of a broader 130 billion euro rescue package by European partners and the European Central Bank (ECB), an IMF staff report warned that Athens had no space for error as [...]
Wen Jiabao vows to use his last year in power to attack mounting discontent he says could end in chaos
He warns China could see a new Cultural Revolution
Chinese Premier Wen Jiabao today warned that the country needs to embrace democracy and make urgent political reforms.
Mr Wen said that the changes are needed to prevent China’s economy from faltering and to spread wealth more evenly.
He vowed to use his last year [...]
Spain must explain soon to the European Commission why its 2011 budget deficit was substantially higher than expected and deliver clear future budget plans, the Commission said on Tuesday.
Spain’s 2011 budget deficit came to 8.51 percent of GDP, the finance minister said on Monday, up from early estimates of 8.2 percent and far above forecasts from the Commission for something nearer 6.5 percent.
Spain, which has enacted austerity measures and economic reforms [...]
(Reuters) – Cubans paid almost 20 percent more for food in 2011 as economic reforms, reduced imports and stagnating farm production touched off price inflation at the country’s many produce markets.
The National Statistics Office reported on its website (ONE.CU) that meat prices rose 8.7 percent while produce prices were up 24.1 percent, for an average of 19.8 percent.
The report was bad news for President Raul Castro, who has been loosening [...]
Moscow, Jan 31 : The stand-off between Russian Prime Minister Vladimir Putin and anti-government protesters may escalate into a civil war, billionaire presidential candidate Mikhail Prokhorov has said. The businessman, whose fortune is estimated at USD 18 billion, urged “evolution, not revolution” and promised sweeping political and economic reforms if he wins the vote.
Many pro-Kremlin pundits have warned the rallies are a preparation for an “Orange revolution” scenario of removing [...]
PARIS (Reuters) – There are weeks when it can sound as if the European sovereign debt crisis is going round in circles.
Barbed exchanges between Italian Prime Minister Mario Monti andGerman Chancellor Angela Merkel carry echoes of a prolonged dialogue of the deaf between Greece and Germany two years ago when Berlin was resisting calls to bail out Athens.
Then as now, a debt-stricken government pushing through spending cuts, tax rises and economic reforms pleaded for [...]
Banks around the world are preparing for the possible collapse of the euro as fears of the European debt crisis increase.
Several banks are even installing systems capable of coping with trading in old European currencies.
Meanwhile finance firms, corporations, and different governments have also turned to plans that aim at preparing them for harsh times.
Regulators have asked banks in the US and UK to provide updates on readiness levels in case [...]
ROME (AP) — Few Italians are willing to make personal sacrifices – like retiring at age 67 instead of 65, or even earlier – though they believe cutting the country’s public debt is a top priority, according to an AP-GfK poll released Tuesday.
And most Italians think the country should stay in the 17-nation eurozone even though the European Union is demanding such tough economic reforms.
A full 93 percent of Italians [...]
November 22, 2011 10:14 am
Spanish yields soar in T-bill sale
By Victor Mallet in Madrid
Spain’s Treasury saw yields rise to painfully high levels on Tuesday when it sold three-month bills at an average yield of 5.11 per cent, more than double the rate when it sold the same paper last month at 2.292 per cent.
A total of €2.98bn of bills were sold, close to the maximum target of €3bn, but the [...]
Europe’s core, call it Germany, is now caught in a war of reverse attrition on three fronts: with Greece, with Italy, and as of today, With France. And unfortunately for the European monetary union, Europe, call it Germany, is losing. While the focus continues to be on G-Pap for the second day in a row following his shocking referendum announcement, the real diversion remains Italy, where the government is in [...]
Christine Lagarde, head of the International Monetary Fund, on Thursday raised the spectre of her organisation withholding its portion of an €8bn ($11bn) aid payment Greece needs by the end of this month, saying Athens had implemented requisite economic reforms “in parts”.
Speaking ahead of a highly anticipated meeting of IMF, US and European finance officials in Poland, Ms Lagarde said Athens had to re-ignite [...]
(Reuters) – Iceland’s president accused European countries on Sunday of having bullied it into agreeing to guarantee repayment of the debts of a failed bank, reviving a dispute with Britain and the Netherlands whose citizens are owed billions.
When Iceland’s banking sector collapsed in the 2008 global financial crisis, accounts were frozen at the bank Landsbanki, which had accepted deposits from British and Dutch [...]
French President Nicolas Sarkozy called a eurozone crisis meeting with his German counterpart while Italy promised cuts and tax hikes Thursday as its part in the battle to save the single currency.
Merkel will travel next Tuesday to Paris for the meeting aimed at producing “joint proposals” by September on how to better manage the euro and avoid future instability, Sarkozy’s office said.
The announcement came as [...]
ECB says will “actively implement” bond-buying
Sun, Aug 7 2011
By Paul Carrel
FRANKFURT (Reuters) – The European Central Bank said on Sunday it would “actively implement” its controversial bond-buying programme to fight the euro zone’s debt crisis, signaling it will buy Spanish and Italian government bonds to halt financial market contagion.
After a rare Sunday night conference call, the ECB welcomed announcements by Italy and Spain of [...]