Draghi Ally Asmussen to Leave ECB for German Government

By Paul Gordon and Rainer Buergin  Dec 16, 2013 10:49 AM GMT+0200

Joerg Asmussen is to leave the European Central Bank’s Executive Board for a government position, depriving President Mario Draghi of a key German ally.

Asmussen, 47, will become deputy labor minister in German Chancellor Angela Merkel’s government and will shortly resign from his post at the ECB, he said in a statement distributed by the Frankfurt-based institution yesterday. Asmussen has been on the six-person Executive Board, which implements monetary policy for the euro area, since January 2012. His term was scheduled to run until 2019.

Greek bonds rally as German election draws near

Fri Sep 20, 2013 4:50pm IST

By Marius Zaharia

(Reuters) - Greek government bonds rallied on Friday as an election campaign in European paymaster Germany neared its end with little clarity about what it might mean for Greece's future in the euro zone.

Funding gaps facing Athens and the risk Portugal may not return to markets when its bailout runs out next year will be among European policy challenges for Germany's next government.

Merkel Blames SPD’s Schroeder for Letting Greece Into the Euro

By Stefan Nicola - Aug 28, 2013 1:00 AM GMT+0300

German Chancellor Angela Merkel sought to pin the blame for the euro-region’s debt turmoil on her Social Democratic predecessor, Gerhard Schroeder, saying he should never have let Greece into the single currency area.

Merkel, addressing a campaign rally in the northern German town of Rendsburg yesterday, said the debt crisis that emerged in Greece in late 2009 and dominated her second term had been “brewing for many years” going back to the euro’s inception.

Italy’s Borrowing Costs Rise at Bond Auction After Downgrade

By Chiara Vasarri - Mar 13, 2013 2:39 PM GMT+0200

Bloomberg

Italian borrowing costs rose in the first bond auction since a credit rating downgrade last week that highlighted the economic risks of the country’s current political stalemate.

EU Opens Way for Easier Budgets After Austerity Backlash

By James G. Neuger & Svenja O’Donnell - Mar 5, 2013 1:01 AM GMT+0200

European finance ministers opened the way for looser budget policies after a backlash against austerity thrust Italy into political limbo and shattered months of relative stability in European markets.

Italy’s deadlocked election, France’s refusal to make deeper budget cuts and protests against the shrinking of the welfare state across southern Europe escalated the rebellion against the German-led prescription for fighting the debt crisis.

Italy Election Impasse Negative for Credit Rating, Moody’s Says

By Kevin Buckland - Feb 27, 2013 7:03 AM GMT+0200

Bloomberg

Italy’s inconclusive elections raise the chance for prolonged political uncertainty, putting the country’s sovereign credit rating at risk for a downgrade, Moody’s Investors Service said.

Italy Renews Market Concerns as Voters Reject Monti

By Andrew Frye - Feb 26, 2013 9:24 AM GMT+0200

Bloomberg

Italy’s inconclusive election triggered renewed market convulsions over Europe’s debt crisis as recession-scarred voters repudiated budget rigor and established former comedian Beppe Grillo as a political force.