Out of Europe overnight we get one of the first signs that Angela Merkel might be willing to blink in her game of chicken with the peripheral sovereign nations. Germany has indicated that they would be open to what amounts to a one-off variation of “eurobonds,” the pooling of Eurozone debt into a common security. However, this would be part of a larger action that would centralize fiscal control throughout the Eurozone.
|By: David Dayen Tuesday June 5, 2012 8:15 am|
|By: Scarecrow Friday June 1, 2012 10:10 am|
The Euro-zone is at best a half-baked idea with a lot of missing ingredients, and what’s missing is everything that matters. They either need to add the missing ingredients, and soon, or start cleaning up the mess they’ve made in everyone’s kitchen.
|By: David Dayen Thursday May 31, 2012 3:30 pm|
The head of the European Central Bank Mario Draghi said today that the structure of the Eurozone currency union was “unsustainable.” Aside from this being a reaction to pressure about the ECB’s conduct during the crisis, it appears to be an acknowledgment that the leadership is either unwilling or unable (I think the former) to take the necessary steps to prevent a catastrophe.
|By: David Dayen Wednesday May 30, 2012 6:30 pm|
There’s something to keep in mind when we talk about “bailouts” and rescue packages for European sovereigns. It’s worth repeating, plus the New York Times finally managed to cover it today. The money from these bailouts to Greece, for example, inevitably goes right into the banking sector, particularly German and French banks who are creditors for Greek loans. So they really should be described as back-door bank bailouts.
|By: David Dayen Wednesday May 30, 2012 7:05 am|
A couple days ago, Spain floated an idea to deal with their bailout of Bankia, which would have represented a back-door way for the country to print money without having control of their own currency through a central bank. But the European Central Bank has apparently nixed the idea for now, leaving Spain to scramble for alternatives to keep it’s banking system afloat.
|By: David Dayen Monday May 28, 2012 9:30 am|
In the US, Republicans like to call accurate descriptions of their plans to destroy our old-age health care system the “Mediscare.” Putting aside the accuracy part, I guess we can call EU leaders’ apparently somewhat successful effort to influence the Greek elections the “Euroscare.” The effect has been to increase polls for parties claiming they’ll support the austerity measures, because Greeks are being told that’s essential to stay within the Euro.
|By: David Dayen Monday May 21, 2012 2:50 pm|
Alexis Tsipras, the head of the Syriza Party in Greece, is making public appearances in Paris to convince other nations to call the bluff of EU leaders on whether they will “force” Greece out of the Eurozone in the event of a Syriza victory on June 17.
|By: David Dayen Thursday May 17, 2012 6:40 pm|
You can feel the heat being turned up on Europe. Greece is in the middle of what the Guardian has called a bank jog. In the 10 days since the elections which led to a political stalemate, a caretaker government, and new elections, Greek depositors have removed €3 billion from their banking system. It’s not like the banking system was super-secure before the May 6 elections, either.
|By: David Dayen Monday May 7, 2012 1:40 pm|
At this moment, politics in Europe is both more interesting and consequential than politics in the US. A case in point: newly-elected Francois Hollande just threw down the gauntlet with Germany, offering his ultimatum to Chancellor Angela Merkel on the future for Euro-zone financing.
|By: Scarecrow Tuesday April 24, 2012 12:40 pm|
Could it be that Europe’s financial and political elites are finally coming to a “d’oh!” moment, when an unbroken string of policy failures and the simple logic of “depression plus austerity = worse depression” finally begin to get through?