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Analysis and Comment (67)

Positive interest rates meant Euros were stuck in the bank. Positive interest rates meant Euros were stuck in the bank. Mario's Planet

Explainer: why does the eurozone need a negative interest rate?

It’s not unusual for central banks with economies to revive to let their interest rates go negative in “real” terms by keeping them below the rate of inflation. The eurozone, the US and the UK have done…
Greece is still an economic mess, and the far right is benefiting. Greece is still an economic mess, and the far right is benefiting. EPA

Why did Europe lurch right? Because the ‘recovery’ is a farce

I was trained as an economist, but that does not mean I think economics determines absolutely everything. However on occasion the impact of economic factors proves so strong that the causality is obvious…
Europe’s economies are still stuck in the mud. Europe’s economies are still stuck in the mud. EPA

Address the eurozone’s original sin, or watch the EU stagnate

What do the latest growth figures teach us about Europe? First, the overall growth performance of the European Union is worse and more fragmented than expected. GDP in vulnerable countries such as Greece…
The row over Scotland in Europe lives on… The row over Scotland in Europe lives on… Yanni Koutsomitis

Scotland Decides ’14: who is right on EU membership?

Europe is back on the agenda in Scotland. William Hague wrote to the Scottish government calling for a plan B in case EU membership is refused. Meanwhile Alex Salmond warned EU member states that there…
A World Bank report gives a hopeful forecast for global growth. A World Bank report gives a hopeful forecast for global growth. Image sourced from www.shutterstock.com

Growth spurt hopes for global economy, but challenges remain

The World Bank’s Global Economic Prospects report released this week is moderately optimistic about the short-term outlook of the global economy. World Bank economists anticipate an improvement in most…
“The euro has backfired: it is holding back growth and job creation; and it is dividing Europe.” “The euro has backfired: it is holding back growth and job creation; and it is dividing Europe.” Stefan Rousseau/PA

Nobel laureate: tough choices for a troubled euro

One of the most exciting things about working at the LSE is that we get to hear some of the world’s top thinkers and policymakers. One occasion that I recall vividly is the visit of two great Europeans…
Where now for European banks? Where now for European banks? MPD01605

This is how the EU can fix its failed banks

The EU has made progress on the construction of a banking union, by agreeing on common rules for dealing with failed banks. The downside is that these rules won’t kick in until 2015: the Eurozone faces…
Could a new method of measuring structural deficits mean easing austerity pressures on troubled Eurozone economies? Could a new method of measuring structural deficits mean easing austerity pressures on troubled Eurozone economies? Chema Sanz via Flickr

Potentially less austerity for the troubled Eurozone

The EU Commission’s autumn economic forecasts are due tomorrow. What makes this event special this year is that there are rumours about a possible change in the Commission’s approach to calculating the…
Dark clouds are gathering over Slovenia. Dark clouds are gathering over Slovenia. lassi.kurkijarvi

The downfall of Slovenia, and why it matters for Europe

The eurozone crisis appears to have a new victim: Slovenia. To avoid the need for a bailout, the IMF has called on the country to immediately recapitalise its banks. This should worry the rest of Europe…
The ECB’s decision to consider purchasing government bonds led to relief in many troubled Eurozone economies. The ECB’s decision to consider purchasing government bonds led to relief in many troubled Eurozone economies. AAP

Good news from the Eurozone … or is it?

Finally good news from the Eurozone! According to recent Eurostat estimates the combined economy of this troubled region grew by 0.3% in the second quarter of 2013 after shrinking for six subsequent quarters…
Greece: not just riots and unemployment. Greece: not just riots and unemployment. flikr/Imagaday

Europe’s latest investment opportunity … Greece

The IMF has conceded that mistakes were made in the way the first Greek bailout in May 2010 was handled. Its report suggests the need to refine the fund’s lending policies to accommodate for conditions…
Cyprus is scrambling to find alternatives to avoid bankruptcy. Cyprus is scrambling to find alternatives to avoid bankruptcy. EPA/Filip Singer

Cyprus: moving from the Eurozone to a Russian sphere of influence

The desperation the Cypriot government finds itself in cannot be exaggerated. In the scheme of things, it seems small, but the nature of each Eurozone crisis is that the small problems are often the largest…
The Euro crisis has finally arrived at the economic heartland of Germany; but the road to recovery may be the same for the Eurozone core powers as the peripheral economies. The Euro crisis has finally arrived at the economic heartland of Germany; but the road to recovery may be the same for the Eurozone core powers as the peripheral economies. AAP

The Euro crisis has arrived in Germany: but is a recession scenario plausible?

Last week the German government’s economic forecasts for 2013 have made clear that the Euro crisis will have a serious economic impact on Germany, with the economic growth projection cut down to a mere…
Re-run: if the US fiscal cliff has the same feel as last year’s debt ceiling crisis, we’re not surprised… Re-run: if the US fiscal cliff has the same feel as last year’s debt ceiling crisis, we’re not surprised…

2012, the year that was: Business and Economy

Different year, same crisis. Around this time last year, the United States was looking down the barrel of economic disaster with the debt ceiling. As we approach 2013, it peers over the fiscal cliff. That…
With the implementation of the Single Supervisory Mechanism, European Central Bank chief Mario Draghi has taken a major step towards greater financial integration in the Eurozone. With the implementation of the Single Supervisory Mechanism, European Central Bank chief Mario Draghi has taken a major step towards greater financial integration in the Eurozone. AAP

EU banking union is a decisive step towards saving the euro

Last week was one of mixed fortunes for the Eurozone. The week began badly with news that Italy’s Prime Minister Mario Monti was resigning due to Silvio Berlusconi’s withdrawal of parliamentary support…
The US Federal Reserve has extended its bond-buying program, but will it be effective in boosting the economy? The US Federal Reserve has extended its bond-buying program, but will it be effective in boosting the economy? Image from www.shutterstock.com

More money, more problems? The quantitative easing quandary

In an attempt to bolster the economy, the Federal Reserve announced a fresh round of bond purchases to replace Operation Twist, the stimulus program that is set to expire this month. It will spend $US45…
Tackling France’s mounting sovereign debt will prove challenging for French President François Hollande. Tackling France’s mounting sovereign debt will prove challenging for French President François Hollande. AAP

There are no easy solutions for France’s economic woes

Pressure is mounting for the recently elected French Socialist president, François Hollande and his government to address France’s sovereign debt, which is currently at a post-war record of 91%. France…
European Central Bank President Mario Draghi announced that the ECB will buy back bonds on the secondary market in a bid to curb the debt crisis. European Central Bank President Mario Draghi announced that the ECB will buy back bonds on the secondary market in a bid to curb the debt crisis. AAP

Bonds to the rescue: ECB reveals its Eurozone rescue plan, but will it be enough?

Yesterday, the European Central Bank’s president, Mario Draghi, unveiled the European Central Bank’s rescue plan for the Eurozone. Mr Draghi said that the ECB is now prepared to buy sovereign bonds of…
Fair contest: should we tinker with the rules in a free market? Fair contest: should we tinker with the rules in a free market? AAP

The AFL’s lesson for the global economy: changing the rules works

We all know the global economy is down the toilet. Even if we overlook the financial debacle in Greece, Spain, Iceland, Ireland – and that’s not easy – the big problem is Uncle Sam. Currently, the US Government…
Show of unity: Spain’s King Juan Carlos (centre) supported austerity cuts by Prime Minister Mariano Rajoy - but expressed concern about their impact on Spanish youth. Show of unity: Spain’s King Juan Carlos (centre) supported austerity cuts by Prime Minister Mariano Rajoy - but expressed concern about their impact on Spanish youth. AAP

Spain faces brain drain as its youth looks for a future abroad

Half of Spain’s youth (that is, those under the age of 25) are now officially unemployed, while overall unemployment in Spain stands at 24.4%, according to the latest figures released by the Spanish Institute…
In the aftermath of the Greek elections, there have been renewed calls to accompany austerity measures with pro-growth policies. In the aftermath of the Greek elections, there have been renewed calls to accompany austerity measures with pro-growth policies.

Austerity and growth: trying to make sense of a contradiction

Having read that the outcome of the Greek elections points to a continuation of the push for fiscal austerity in that country, my heart sunk. Then I see that our own Prime Minister has been quoted as telling…
Greece’s citizens are faced with an unenviable choice. Greece’s citizens are faced with an unenviable choice. EPA/Orestis Panagiotou

Greece’s choice: bargaining versus pleading

When two sides bargain, their interaction reflects a potential mutual benefit but also a measure of conflict. For instance, when a firm and its supplier reach a deal, there is often more than one price…
Alexis Tsipras, leader of the Coalition of the Radical Left (Syriza) party, has proposed the cancellation of Greece’s agreements with the European Union and the IMF. Alexis Tsipras, leader of the Coalition of the Radical Left (Syriza) party, has proposed the cancellation of Greece’s agreements with the European Union and the IMF. AAP

With Europe at debt’s door, the future hinges on Greece’s election result

All eyes are on Greece this weekend for the second legislative election in five weeks. This is no ordinary election: the global implications of the outcome might be significant. Griffith University lecturer…
Alexis Tsipras will lead Syriza to the polls on June 17. Alexis Tsipras will lead Syriza to the polls on June 17. EPA/Orestis Panagiotou

Greek elections: the heart of contradiction

To free the age from its captivity, To create a brand new world, The discordant, tangled days Must be linked, as with a flute. –Osip Mandelstam, The Age (1923) There is an air of impending disaster in…
If Australia had been founded according to the Eurozone model, our current economic situation would look very different. If Australia had been founded according to the Eurozone model, our current economic situation would look very different. adam79

Australia and the Eurozone: a counterfactual account of economic history

Suppose that in 1901 Australia’s founding fathers had designed the Commonwealth differently. The states were to retain all powers to tax and had to finance themselves (including health, education and social…
Spanish Prime Minister Mariano Rajoy: banks are bailed, but just a brief respite? Spanish Prime Minister Mariano Rajoy: banks are bailed, but just a brief respite? AAP

Spanish bailout buys time for eurozone - but only a little

The positivity off the weekend’s news that Spain’s banks will receive rescue loans of up to 100 billion euros from eurozone finance ministers appears short-lived. Despite it being well-received in Asian…
Following the EU summit in Brussels this week, it seems eurobonds are back on the agenda. But will it be what it needed to save the Eurozone? Following the EU summit in Brussels this week, it seems eurobonds are back on the agenda. But will it be what it needed to save the Eurozone? AAP

Will (Euro)bonding help solve the euro crisis?

The special EU summit held in Brussels on Wednesday revamped the discussion on Eurobonds (i.e. the issuance of common government bonds to pool the Eurozone debt liability) as a possible option to address…
Austerity’s political cheer squad: but is the game over? G8 countries have committed to growth by setting sights on employment. Austerity’s political cheer squad: but is the game over? G8 countries have committed to growth by setting sights on employment.

Why do our world leaders cling to the dismal politics of economic austerity?

The lingering commitment to austerity of leading Western politicians in the face of impending economic tragedy is beyond belief. The dismal science is a sobriquet often wrongly applied to economics, but…
During the Great Depression, policymakers had an irrational - and detrimental - attachment to the gold standard. Should we be worried about the similar fervour for a strong euro? During the Great Depression, policymakers had an irrational - and detrimental - attachment to the gold standard. Should we be worried about the similar fervour for a strong euro? BullionVault

When it comes to solving the euro’s woes, it’s the same gold story

Are the tragedies of the 1920s repeating themselves in the twenty-first century? In the 1920s, an irrational attachment to the gold standard helped cause the Great Depression, as European fears of inflation…
German chancellor Angela Merkel and France’s new President Francois Hollande meet to discuss Europe’s economic woes. German chancellor Angela Merkel and France’s new President Francois Hollande meet to discuss Europe’s economic woes. EPA/Rainer Jensen

Hollande and Merkel: breaking up is hard to do

Europe is in economic dire straits and the two most powerful economies on the continent are, at least on paper, led by individuals with considerable differences. The previous French President Nicolas Sarkozy…
Greek citizens took their frustration out on the ballot box this weekend. Greek citizens took their frustration out on the ballot box this weekend. EPA/Orestis Panagiotou

Elections in Europe an assault on the austerity doctrine

The answer, even though they see over and over again that austerity leads to collapse of the economy, the answer over and over [from politicians] is more austerity. – Joseph Stiglitz, Asian Financial Forum…
The European Central Bank’s long-term refinancing operations have reduced acute liquidity problems in the banking sector, but the situation in the Eurozone remains fragile. The European Central Bank’s long-term refinancing operations have reduced acute liquidity problems in the banking sector, but the situation in the Eurozone remains fragile. AAP

The ECB’s long-term refinancing operations: a solution to the debt crisis, or doomed to fail?

In November 2011, the Eurozone crisis reached a climax with interest rates on sovereign debt of Eurozone problem debtors soaring. Fear of sovereign defaults spilled over into the interbank markets as Eurozone…
Plans by Spain’s new conservative government to push through deep labour reform has provoked protests, as it struggles to tackle its soaring unemployment rate. Plans by Spain’s new conservative government to push through deep labour reform has provoked protests, as it struggles to tackle its soaring unemployment rate. AAP

Spain strikes against TINA, as the Eurozone watches on

Spain’s general strike last week has sent a clear message to other Eurozone countries about how challenging it may be to implement labour market reform. The strike was mostly peaceful, with the exception…
Not so funny…. Portugal is the next vulnerable Euro nation, but it doesn’t fit the German-favoured critique of a profligate country unwilling to undertake reforms. Not so funny…. Portugal is the next vulnerable Euro nation, but it doesn’t fit the German-favoured critique of a profligate country unwilling to undertake reforms. AAP

After the Greek rescue package: will Portugal be the next to fall?

Greece is rescued, for now…maybe. Perhaps it’s time to move on to the next basket case. So, which of the PIIGS is the next Greece? For the moment, Portugal looks to be the front-runner. The country’s public-debt-to-GDP…
Protests rocked Athens as Greek legislators voted to accept a tough austerity package. So what now for the Greek people? Protests rocked Athens as Greek legislators voted to accept a tough austerity package. So what now for the Greek people? AAP

Austerity in, Euro out – is this Greece’s future?

As Greek politicians approved a tough austerity package amid fierce protests, one question dominates: is an orderly exit from the Eurozone available for Greece? And just what might be the consequences…
Just how can Europe grapple with sluggish economic growth? Just how can Europe grapple with sluggish economic growth? AAP

Growth is essential to rescue the Euro - the question is, how?

When it comes to finding ways out of the European sovereign debt crisis, views appear to range widely. At last week’s World Economic Forum Martin Wolf, chief economic commentator for the Financial Times…
Economic policies – not credit ratings – will determine the future of the euro. Economic policies – not credit ratings – will determine the future of the euro. AAP

The Eurozone’s future rides on Italy’s actions, not S&P’s ratings

The decision by Standard and Poor’s to downgrade the debt of nine Eurozone countries last week, followed by the inevitable downgrade of the Eurozone rescue fund two days later, raises important questions…
French leftists protest after Standard & Poor’s downgraded the country’s debt on Friday. French leftists protest after Standard & Poor’s downgraded the country’s debt on Friday. AAP

After France’s downgrade, Europe’s debt cycle looks hard to break

Standard & Poor’s decision to downgrade the credit ratings of nine Eurozone countries, including Austria, France, Italy, Spain, and Portugal, is another symptom of the contagious and vicious debt cycle…
Spain, Italy, Portugal and Greece face serious problems without EU-wide financial reform. Spain, Italy, Portugal and Greece face serious problems without EU-wide financial reform. AAP

While Rome burns, it’s time for some monetary and fiscal fiddling

Every year, on the evening of December 31, the President of the Republic of Italy addresses the Italian people with a video message broadcast by all the major radio and television networks. This “end of…
British Prime Minister David Cameron had no choice but to reject the EU plan and was right to do so. British Prime Minister David Cameron had no choice but to reject the EU plan and was right to do so. AAP

Why Cameron can’t afford to get fiscal with the EU

Last week’s EU Brussels summit produced a tentative fiscal compact, a mild boost of the European Financial Stability Facility’s (EFSF) reserves to €500 billion, and an acrimonious split between Britain…
Merkel, Sarkozy and Monti must accept drastic fiscal reforms if they want to save the Eurozone. Merkel, Sarkozy and Monti must accept drastic fiscal reforms if they want to save the Eurozone.

Europe’s economies must pull together before they fall to pieces

The announcement by credit ratings agency Standard & Poor’s overnight that it could downgrade the triple-A rating of Europe’s debt rescue fund has battered market confidence, which had been buoyed…
Despite happy appearances, the two leaders disagree the way out of the Eurozone crisis. Despite happy appearances, the two leaders disagree the way out of the Eurozone crisis. AAP

A make-or-break week: Can Sarkozy and Merkel save the euro?

What could be a decisive week for Europe and its common currency has begun, with the announcement of a package of fiscal austerity measures in Italy. Markets, European partners, and – perhaps above all…
Markets responded positively to the central banks' credit lifeline, but serious problems lie ahead. Markets responded positively to the central banks' credit lifeline, but serious problems lie ahead. AAP

Central banks' credit lifeline will keep global economy liquid, but not afloat

For European banks threatened by a looming credit squeeze, the US Federal Reserve’s move to cut the cost of obtaining US dollars rescue hasn’t come a moment too soon. The Fed’s decision to engage in quantitative…
The European Central Bank needs to start buying more bonds from Eurozone countries. The European Central Bank needs to start buying more bonds from Eurozone countries. Images_of_Money

With Italy stagnant, it’s time for drastic Euro intervention

The departure of Silvio Berlusconi does not seem to have eased the pressure on Italy, with reports suggesting the International Monetary Fund is reading a 600 billion euro emergency bailout for the Eurozone’s…
The eurozone crisis is moving beyond “spendthrift” countries in need of rescue, to the rescuers themselves. The eurozone crisis is moving beyond “spendthrift” countries in need of rescue, to the rescuers themselves. AAP

Heart of darkness – entering the Eurozone’s end game

Early this week, sovereign bonds spreads for France and other Euro-core countries peaked. Around noon on Tuesday the spreads on French and Austrian 10-year government bonds exceeded the German bund rate…
Angela Merkel and Nicolas Sarkozy must take drastic steps to maintain the legitimacy of EU institutions. Angela Merkel and Nicolas Sarkozy must take drastic steps to maintain the legitimacy of EU institutions. AAP

It’s time for Europe to show some courage

The European Union is in crisis – yet again. If you enter “Europe in crisis” into Google, more than 655 million entries pop up. Europe’s current problems are being described as a Euro crisis – it is a…
Former EU commissioner Mario Monti will form government in Italy as Silvio Berlusconi exits. Former EU commissioner Mario Monti will form government in Italy as Silvio Berlusconi exits. AAP

Here come the technocrats, to save the Eurozone

Is the Eurozone about to crash and burn, leaving Club Med in its wake? Not so fast. Reports have suggested that French President Nicolas Sarkozy and German Chancellor Angela Merkel have discussed a strategic…
The Irish have seen their booming economy implode. Is it a good lesson for Australia? The Irish have seen their booming economy implode. Is it a good lesson for Australia? AAP

The lessons Europe forgot are the ones Australia will do well to remember

When Treasurer Wayne Swan finger-wagged at the recent set of G20 events, scolding his European colleagues and telling them to get their act together, he had more of a point than perhaps the Australian…
Italy’s debt woes will not disappear after Berlusconi finally steps down. Italy’s debt woes will not disappear after Berlusconi finally steps down. AAP

As the Eurozone teeters, Italy has no time to waste

Global markets have tumbled in the past 24 hours on fears over Italy’s worsening debt crisis, with media reports that Germany and France have begun talks to break up the Eurozone if the monetary union’s…
Berlusconi’s resignation is one step towards solving Italy’s debt crisis – but many more are needed. Berlusconi’s resignation is one step towards solving Italy’s debt crisis – but many more are needed. AAP

Berlusconi’s going, but there’s no Silvio bullet for Italy’s debt

Italy’s sovereign debt crisis has been overshadowed by Prime Minister Silvio Berlusconi’s reluctant promise to resign after the country’s parliament made clear he no longer commanded a majority. Italy…
The Greek Prime MInister is on the way out, but the new government has a lot of work still to do. The Greek Prime MInister is on the way out, but the new government has a lot of work still to do. AFP/Aris Messinis

New PM for Greece but will a new government save the country from the debt crisis?

The Greek Prime Minister will resign in an effort to save the bailout deal agreed by the European Union to dig the country out of its debt crisis. George Papandreou agreed to go following talks with the…
Italy’s disturbing debt-to-GDP ratio has been decades in the making. Italy’s disturbing debt-to-GDP ratio has been decades in the making. AAP

Don’t blame the Eurozone for Italy’s homegrown debt crisis

During protests in Rome last month, as groups of hooded protesters clashed with the police, set cars on fire, and smashed bank windows around the Piazza San Giovanni, two large speakers installed on a…
Greek Prime Minister George Papandreou will use the referendum to try to win a mandate for austerity measures. Greek Prime Minister George Papandreou will use the referendum to try to win a mandate for austerity measures. AAP

Pain or more pain? The political gamble behind Greece’s debt referendum

Greek Prime Minister George Papandreou has taken the bold step of planning a referendum on the country’s EU-imposed austerity measures, in a bid to claim a mandate for his efforts to avoid a default on…
The first free elections borne from the Arab Spring were held in Tunisia. Over 90% of registered adults voted. The first free elections borne from the Arab Spring were held in Tunisia. Over 90% of registered adults voted. EPA/Zacarias Garcia

Tunisian hope and Greek despair: A week in the life of democracy

It has been a tumultuous week in the life and times of democracy in the Mediterranean. Seven days punctuated by joyous hope and its ugly opposite, sullen despair. The promising news came from Tunisia…
Slovakian Prime Minister Iveta Radikova’s government was a political victim of the continuing Euro debt crisis. Slovakian Prime Minister Iveta Radikova’s government was a political victim of the continuing Euro debt crisis. AAP

Slovakian political crisis highlights fragility of Eurozone debt solution

The Central European country of Slovakia has finally ratified the EU bailout fund – but not before its initial refusal caused a spill of the Slovakian government and highlighted the deep political divisions…
Jean-Claude Trichet will step down at ECB president in November. Jean-Claude Trichet will step down at ECB president in November. AAP

As Euro Central Bank boss Trichet exits, will debt crises taint his legacy?

As the Eurozone trembles at the prospect of Greece defaulting on its debt, the winds of change are at work at the European Central Bank (ECB). ECB President Jean-Claude Trichet will step down in November…
Euro banks have been urged to reinforce their balance sheets. Euro banks have been urged to reinforce their balance sheets. AAP

Can ‘living wills’ protect the banking system?

Eurozone leaders have moved to address liquidity fears, with the European Central Bank announcing new measures to head off a credit crunch. Britain has also announced quantitative easing measures. Outgoing…
Italian Prime Minister Silvio Berlusconi’s austerity measures are misdirected and too dramatic. Italian Prime Minister Silvio Berlusconi’s austerity measures are misdirected and too dramatic. AAP

As Moody’s trashes Italy, voters can’t count on Berlusconi

The move by international ratings agency Moody’s to cut Italy’s credit rating for the first time in two decades will do little to ease concerns about the Eurozone’s debt crisis, despite global markets…
European Commission President Jose Manuel Barroso says the FTT could raise 55 billion euros a year. European Commission President Jose Manuel Barroso says the FTT could raise 55 billion euros a year. AAP

The EU’s adopting a financial transactions tax, so why don’t the rest of us?

Momentum is building behind the global campaign to impose a tax on transactions in financial markets, with European Commission President Jose Manuel Barroso announcing plans to introduce the measure as…
Is a partial default one of the steps to recovery for Greece? Is a partial default one of the steps to recovery for Greece? AAP

Defend or default? It’s the three trillion euro question

Will Greece default and exit the Eurozone? The best-case scenario is a managed, orderly, partial default with the European Financial Stability Facility (EFSF), a fund created in 2010 to manage Eurozone…
Greeks protest the austerity measures put in place during the ongoing debt crisis. Greeks protest the austerity measures put in place during the ongoing debt crisis. AAP

Hey buddy, can you spare a paradigm? European politics and bankruptcy

Europe is in crisis once again and this time it is deadly serious. At stake is not only the survival of the European currency, but also of the entire integration project. Collapse of the Euro could trigger…
If Greece’s economy collapses, it could easily lead to a breakdown of civil order. If Greece’s economy collapses, it could easily lead to a breakdown of civil order. AAP

What will happen if Greece defaults?

Global markets look set for a rough week amid new concerns that Greece could default on its massive debt. The Australian share market has spent most of the day down 3% after reports that Germany could…
Nicolas Sarkozy and Angela Merkel believe an FTT can help solve Europe’s debt woes. Nicolas Sarkozy and Angela Merkel believe an FTT can help solve Europe’s debt woes. AAP

Let’s all dance to Europe’s tune and impose a financial transactions tax

French President Nicolas Sarkozy and German Chancellor Angela Merkel have announced a plan to impose a financial transactions tax (FTT) for the Eurozone, as part of an effort stem the bloc’s worsening…
While the US is finding its footing, China is looking to expand its global economic power by pushing for the renminbi importance in international transactions. While the US is finding its footing, China is looking to expand its global economic power by pushing for the renminbi importance in international transactions. Fotopedia/Philip Roeland

How the West’s money problems could hasten global power shift

The downgrading of US debt by Standard & Poor’s may sound the starting gun for an enduring rebalancing of global economic power. For decades, investors worldwide sought the safety of US government…
German chancellor Angela Merkel and French President Nicolas Sarkozy have outlined a rescue plan for the Eurozone. German chancellor Angela Merkel and French President Nicolas Sarkozy have outlined a rescue plan for the Eurozone. AFP

PIIGs might fly - is a single economic government the way forward for Europe?

German Chancellor Angela Merkel and French president Nicolas Sarkozy have overnight laid out plans for a stronger European integration that seeks to control deficit restrictions on member countries and…
The only way out of this crisis is to dishonour some of the debt that is weighing down the global economy. The only way out of this crisis is to dishonour some of the debt that is weighing down the global economy. AAP

Ireland, Greece … France? Accepting default is Europe’s only option

The dramatic falls in share prices of Greek debt-laden French banks overnight highlights just how closely tied the current market chaos is to the world’s worsening debt woes. Market crashes like that of…

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