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 behind rise in eurozone jobless to record

By By Pan Pylas on March 01, 2013

Bloomberg Businessweek

LONDON (AP) — Italy's voters gave their verdict on the austerity medicine they've been forced to take when they went to the polls earlier this week. By Friday, one of the reasons behind the protest was highlighted when the country's unemployment hit its highest level in at least two decades.

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.

Austerity, Italian Style

The New York Times

By PAUL KRUGMAN

Published: February 24, 2013

Two months ago, when Mario Monti stepped down as Italy’s prime minister, The Economist opined that “The coming election campaign will be, above all, a test of the maturity and realism of Italian voters.” The mature, realistic action, presumably, would have been to return Mr. Monti — who was essentially imposed on Italy by its creditors — to office, this time with an actual democratic mandate.

Euro-Area Debt Pooling Abandoned by EU Parliament in Budget Law

By Jonathan Stearns - Feb 20, 2013 11:20 AM GMT+0200

Bloomberg

European Parliament negotiators abandoned a demand for a fast-track move toward debt pooling by euro governments at the insistence of a German-led group of nations opposed to such an anti-crisis step.

Saxo Bank CEO Says Euro Doomed as Single Currency Woes Resurface

By Mahmoud Kassem - Feb 17, 2013 10:39 AM GMT+0200

Wal-Mart Executives Sweat Slow February Start in E-MailsQ

Saxo Bank CEO Says Euro Doomed as Single Currency Woes Resurface

By Mahmoud Kassem - Feb 17, 2013 10:39 AM GMT+0200

http://www.bloomberg.com/news/2013-02-17/saxo-bank-ceo-says-euro-doomed-as-single-currency-woes-resurface.html

Bloomberg

Lars Seier Christensen, co-chief executive officer of Danish bank Saxo Bank A/S, said the euro’s recent rally is illusory and the shared currency is set to fail because the continent hasn’t supported it with a fiscal union.

European Union Leaders Agree to Slimmer Budget

The New York Times

By JAMES KANTER and ANDREW HIGGINS

Published: February 8, 2013

BRUSSELS — As European Union leaders began their 14th hour of budget negotiations after a sleepless night, Valdis Dombrovskis, the prime minister of Latvia, took the floor early Friday to address what, for his Baltic nation of around just two million people, is a vital question: Why should a Latvian cow deserve less money than a French, Dutch and even Romanian one?

European political worries halt risk asset rally

By Richard Hubbard

London | Mon Feb 4, 2013 11:23am GMT

(Reuters) - Stronger U.S. and Chinese economic data supported world equity markets on Monday, while the euro dipped and Spanish bond yields rose as growing political uncertainty in southern Europe worried investors.

EURO GOVT-Political risks hurt Spanish and Italian bonds

Mon Feb 4, 2013 4:11am EST

* Spanish and Italian yields rise as political risks grow

* 2013 rally in peripheral bonds reaching stretched levels

* Bunds rebound but remain lower after late Friday selloff

By William James

IMF’s Greek Euro Exit Analysis

January 31, 2013, 9:57 AM

By Matthew Dalton

The Wall Street Journal

We’re a tad late getting to this, but the International Monetary Fund in its latest report on the Greek bailout took an interesting look at how far euro-zone economic output would fall if Greece ditched the common currency. The fund’s answer: Maybe a lot, maybe not so much – though even the “not so much” scenario looks pretty bad.

Bankers, policymakers say Europe's crisis not over

By Emma Thomasson and Alexander Smith

DAVOS, Switzerland | Sat Jan 26, 2013 12:15pm GMT

(Reuters) - International bankers and finance ministers warned on Saturday that Europe's crisis was not over even though the euro currency is now stabilised, it will take years to overcome economic malaise and mass unemployment in Europe.

Greece Opposition Leader Calls for European Debt Renegotiation Summit

The New York Times

By RICK GLADSTONE

Published: January 25, 2013

¶ The 38-year-old leftist opposition leader in Greece, who could become its next prime minister on a wave of simmering popular fury over the Greek government’s austerity measures, called on Friday for a European summit to ease the crushing debts that threaten not only his country but all of Europe.

UPDATE 2-IMF sees up to 9.5 bln euro Greek funding gap in 2015-2016

 Jan 18, 2013 9:35pm EST

* Greek economy likely to shrink again this year

* Brazil opposes loan tranche to Greece

By Lesley Wroughton

WASHINGTON, Jan 18 (Reuters) - The International Monetary Fund estimated on Friday that Greece faced a financing gap of between 5.5 billion and 9.5 billion euros for 2015 and 2016 and said it had assurances from Europe it would deliver the aid in the final years of the bailout.

The year ahead in the euro zone: Lower risks, same problems

By Nouriel Roubini JANUARY 14, 2013

Reuters

Financial conditions in the euro zone have significantly improved since the summer, when euro zone risks peaked because of German policymakers’ open consideration of a Greek exit, and the sovereign spreads of Italy and Spain reached new heights.

TEXT-S&P: eurozone could start to overcome debt crisis in 2013

Reuters

Jan 9 - This could be a decisive year in determining whether the eurozone

(European Economic and Monetary Union) can emerge from its sovereign debt

troubles, says Standard & Poor's Ratings Services today in the report: "The

Eurozone Debt Crisis: 2013 Could Be A Watershed Year."

How Europe's Currency Survived 2012 Intact

The Wall Street Journal
http://online.wsj.com/article/SB10001424127887323300404578205580657203900.html

Leaders Muddled Through, but Bought Time for the Euro Area, Which Enters 2013 With All 17 Members Along for the Ride

With three days left of the old year, there's still time for even this prediction to go awry. But let's stick our necks out: Contrary to some expectations, the euro zone will end the year as it entered it—with 17 members.

 

German economy to grow "decently" in 2013 - Finance Minister

BERLIN | Thu Dec 27, 2012 12:37pm GMT

 (Reuters) - Germany's economy will expand at a decent rate next year, underpinned by exports to countries outside the euro zone, Finance Minister Wolfgang Schaeuble said.

Europe Wins a Battle, but Not Yet the War

(to)...create a new common bank-resolution authority for the euro zone...
The first is political and Italian
The next risk is political and German
A further risk is technical and possibly Spanish
The next risks are Hellenic

EU, IMF agree to lend Greece 49 bln euros by March

BRUSSELS | Thu Dec 13, 2012 6:59am EST
(From the administrator: This article is from Reuters, and at the end you can find the link, the names of the authors and the adresses of their blogs)

Dec 13 (Reuters) - Euro zone finance ministers and the International Monetary Fund have agreed to release 49.1 billion euros in aid to Greece by the end of March, with most of that sum flowing immediately, senior EU officials said on Thursday.