The EU-IMF Troika in charge of Spain’s €60bn (£48bn) bank rescue is to demand much tougher action by the country’s authorities to clean up toxic debts, risking a clash that could deter Madrid from requesting a full sovereign bail-out.
BNM Mare Nostrum, and other mid-tier “Group 2″ banks such as Popular, Caja 3, and Liberbank, have little chance of tapping the markets to cover most of their capital deficits, according to [...]
It seems German lawmakers reject a banking license for ESM to access ECB; even if funds buy bonds, will be limited by capacity EFSF <€200bn
Showdown Is Imminent Between The Germans And Draghi
European Central Bank President Mario Draghi hinted to investors last week that the ECB would take action in short order to prevent Spanish and Italian borrowing costs from soaring out of control.
He promised to “do whatever it takes to save [...]
German lawmaker’s tough talk on Greece sinks euro
Spanish government bond yields jumped and the euro and European equities extended a slide Friday after a German newspaper quoted a top member of Germany’s coalition government as saying Greece should leave the shared currency if it won’t comply with proposed reforms. Gerda Hasselfeldt, a senior member of the Christian Social Union, the sister party to Chancellor Angela Merkel’s center-right Christian Democratic Union, told [...]
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European Markets Are Going To Shambles! Oof.
Europe is getting bad.
Italy down 2.5%.
Spain is down 2%.
Meanwhile, peripheral yields are shooting up and yields in the core are collapsing.
Read more: http://www.businessinsider.com/european-markets-are-going-to-shambles-2012-7#ixzz219xV1XP6
German lawmaker’s tough talk on Greece sinks euro
Spanish government bond [...]
Germany’s participation in Europe’s fiscal pact and the bailout fund known as the European Stability Mechanism is being challenged in the courts by German lawmakers, democracy group and trade unions.
The left opposition party Die Linke – the only party to oppose the plans in the Bundestag – applied a complaint at the Karlsruhe-based Federal Constitutional Court, claiming the fiscal pact and the ESM breach powers of German lawmakers. Besides them, the [...]
German lawmakers and a democracy group filed suits challenging the country’s participation inEurope’s fiscal pact and the permanent bailout fund after parliament approved the measures late yesterday.
The group “Europe Needs More Democracy” filed a complaint at the Karlsruhe-based Federal Constitutional Court on behalf of about 12,000 people who signed up via the Internet, it said on its website after the bills were passed. Peter Gauweiler, a lawmaker from the Bavarian sister party [...]
The euro fell to the lowest level in more than a week against the yen as Spanish and Italian borrowing costs rose amid concern a European Union summit this week will fail to solve the sovereign-debt crisis.
The 17-nation currency slid earlier against the dollar, reaching its lowest level since June 8, after German Chancellor Angela Merkel told German lawmakers she expects no shared debt liability in her lifetime. The greenback weakened against [...]
Further in programme reference is made that most of European countries with gold reserves held in US may have vaporised:
GoldCore: German lawmakers are to review Bundesbank controls of and management of Germany’s gold reserves. Parliament’s Budget Committee will assess how the central bank manages its inventory of Germany’s gold bullion bars that are believed to be stored in Frankfurt, Paris, London and the Federal Reserve Bank of New York, according [...]
From Economic Policy Journal:
German lawmakers are to review Bundesbank controls of and management of Germany’s gold reserves. Parliament’s Budget Committee will assess how the central bank manages its inventory of Germany’s gold bullion bars that are believed to be stored not only in Frankfurt, but at locations outside Germany, according to German newspaperBild.
What’s most interesting about all this is that Germans may follow in Hugo Chavez’s footsteps and repatriate their [...]
From MSN: Finance Minister Wolfgang Schaeuble pointed out that the 17-member eurozone and 27-strong European Union were based on various principles, which included freedom, a constitutional state and non-discrimination.
“If a country were to decide to leave them, it’s something we would regret but which it would be necessary to accept in accordance with these principles,” he told reporters.
The minister was questioned in particular about debt-stricken Greece. German lawmakers on Monday [...]
Posted: 26 February 2012
BERLIN: Germany’s interior minister on Saturday came out strongly in favour of debt-stricken Greece leaving the eurozone, arguing that this would improve its chances of becoming competitive again.
“I do not mean that Greece should be kicked out of” the 17-nation eurozone, said Hans-Peter Friedrich in an interview with news magazine Der Spiegel, “but to create incentives for an exit that they cannot turn down.”
“Outside European monetary union [...]
Think the ECB announcement to do undergo a pseudo OSI impairment is a done deal? Not so fast – Germany may yet throw a wrench in there. According to Bloomberg, next week German lawmakers will conduct three votes on Greece among which:
the €130 billion Greek bailout package… Wasn’t it €145 billion by now?
the empowerment of the EFSF to guarantee Greek government bonds held by the ECB
the guarantee of Greek government [...]
German Chancellor Angela Merkel faces a second vote on the rescue fund on Wednesday.
Chancellor Angela Merkel has provided German party heads some details of the planned euro rescue package set for approval by European leaders on Wednesday. They include a Greek debt cut of up to 60 percent and leveraging the bailout fund to one trillion euros. The measures will be put to a full vote in German parliament on Wednesday.
German Chancellor [...]
The EU-IMF bail-out machinery would require an extra €250bn or more to stabilize eurozone debt markets, forcing Germany and EU’s creditor states to vastly increase rescue commitments.
The report, due Friday, said a double-dip recession would lead to a downgrade of “one or two notches” for France, Spain, Italy, Ireland and Portugal, both because of tumbling tax revenues and the extra costs of propping up banks.
The scenario looks increasingly likely [...]
lawmakers approved by a wide margin legislation to boost the scope and
size of the euro zone’s rescue fund, in a major step toward tackling the
bloc’s sovereign-debt crisis.
passed the reform of the European Financial Stability Facility with 523
‘yes’ votes, while 85 lawmakers voted ‘no’ and three abstained. The
vote was seen as a test of Chancellor Angela Merkel’s center-right
17 euro-zone governments have to approve the expansion, which will
boost the fund’s lending [...]
Auntie Angela has finally snapped at the panhandlers begging for handouts, making it clear what the quid pro quo considerations are for interest rate concessions:
* MERKEL SAYS GREECE MUST SELL ASSETS IN RETURN FOR RATE CUTS
* MERKEL SAYS IRELAND MUST BACK JOINT CORPORATE TAX BASE FOR CUTS
* GERMAN LAWMAKERS CITING MERKEL AS COMMENTING IN CLOSED SESSION