While advanced nations are facing some of the highest debt ratios since World War II, IMF economists cited research by Moody’s Analytics that suggested countries such as the UK, US and Canada could afford to live “forever” with relatively high debt shares compared with their pre-crisis averages, reports The Telegraph.
Cyprus is preparing for the presidential ballot this weekend after last week conservative leader Nicos Anastasiades won 45.4% and his opponent communist-backed independent Stavros Malas took 26.9%. According to economists, Mr Anastasiades might be the one who will do what is needed to help Cypriot economy to recover and to strengthen international diplomatic relationship, reported Financial Times.
European leaders are loosening the economic shackles once demanded by Germany as the recession and mounting unemployment in southern Europe shove aside the debt crisis as the euro area’s biggest headache.
A two-day Brussels summit starting Thursday will endorse plans for “structural” assessments of national budgets, according to a draft statement, using code for granting countries such as France, Spain and Portugal extra time to bring down deficits.
FRANKFURT — A dramatic anti-austerity vote leaves Italy lying outside the fortress the European Central Bank constructed around the eurozone last year and vulnerable to a market attack.
This week’s election leaves slim prospects for a durable, reform-minded government in Rome and exposes a flaw in the bond-buying defence plan the ECB put together last September — a weakness that could see the eurozone crisis roar back to life.
Silvio Berlusconi may have the last laugh — at Europe’s expense.
Once the subject of German Chancellor Angela Merkel’s barely suppressed titters, the former Italian leader roared back from the political wasteland in yesterday’s election, blocking the formation of a new Italian government and fracturing the eurozone’s brittle newfound stability.