VISION NEEDED: Mario Draghi, head of the European Central Bank, said Thursday that the 17-country euro currency union is unsustainable in its current form. He told EU leaders they must quickly come up with a broad vision for the future to get the bloc through the current financial crisis.
Earlier today, we noted that Germany (or at least the Finance Ministry) has thrown its support behind a Greek referendum on euro membership. The idea is that if Greeks vote to remain in the currency bloc, they are essentially also voting to accept that their lifestyles are about to get a lot more austere in exchange for Germany’s willingness to help the country avert an outright economic collapse.
Emerging-market policy makers breathed a sigh of relief after the Federal Reserve left its asset-purchase program in full throttle this week. That much is obvious. What isn’t? That a certain central banker in Frankfurt also likely exhaled ever so slightly — Mario Draghi.
Brussels (AFP) - The euro was supposed to be "irreversible", binding the EU ever closer, but the draconian terms demanded of Greece for a new bailout may have destroyed that illusion forever, analysts said Monday.
The European Central Bank’s second round of long-term loans came in at the low end of analysts’ estimates Thursday, bolstering the case for the institution to start large-scale quantitative easing.
The Frankfurt-based ECB said it allotted 130 billion euros (US$161 billion) to euro-area banks at a fixed interest rate of 0.15 per cent in its targeted longer-term refinancing operation. Estimates in a Bloomberg News survey ranged from 90 billion euros to 250 billion euros, with a median of 148 billion euros.
WASHINGTON: The world's financial leaders see a number of threats facing a global economy still on an uneven road to recovery with US and European officials worrying that Greece will default on its debt. The finance ministers and central bank governors ended three days of meetings in Washington determined to work toward ``a more robust, balanced and job-rich economy'' while admitting there are risks in reaching that objective, the steering committee of the International Monetary Fund said in its communique Saturday.