By Josh Barro It reads like a dry, 1,184-word memorandum about fiscal projections. But the International Monetary Fund's memo on Greek debt sustainability, explaining why the IMF cannot participate in a new bailout program unless other European countries agree to huge debt relief for Greece, has provided the "Emperor Has No Clothes" moment of the Greek crisis, one that may finally force eurozone members to either move closer to fiscal union or break up. The IMF memo amounts to an admission that the eurozone cannot work in its current form.
FRANKFURT, Germany — Well, that didn’t last long.
After four quarters of meagre growth, the fragile economic recovery in the 18-country eurozone creaked to a halt in the second quarter.
Growth was zero. After only 0.2% in the first quarter.
Now who will get out and push? The European Central Bank, with a further monetary stimulus? Or governments in France and Italy, which have dragged their heels in making their economies more business-friendly?
The word of the day is "crexit," which was coined by Allianz Chief Economist Michael Heise. This is the idea that Greek will exit from its economic crisis this year. However, many point to a speech given by European Central Bank president Mario Draghi as the turning point for the eurozone crisis as a whole.
Athens (AFP) - As the sun rose above Greece on Sunday, young and old were already queuing to have their say in a referendum which could be a new dawn for their crisis-wracked country, or plunge its finances deeper into the dark.
LONDON: It may only account for 2 per cent of the eurozone economy but Greece has a habit of punching above its weight when it comes to bruising the currency union. And there are fears it could be once again posing a threat to an otherwise burgeoning recovery. Official figures on Wednesday are expected to show that the 19-country eurozone grew by 0.4 per cent in the first quarter of 2015 from the previous three-month period.
With just three weeks until the Greek snap elections on January 25 in which Tsipras' Syriza is virtually assured of victory (unless somehow G-Pap's "new and improved" political party manages to steal enough votes to prevent this, although one wonders what his political campaign will be: "vote for us because this time we know how to avoid a sovereign bankruptcy"), Germany takes yet another opportunity to remin
True that the recent UK credit downgrade attracted a lot of attention, however as some analysts pointed out, it did not reveal anything new. We all know UK growth is flat-lining and the Government’s austerity measures are failing to translate into deficit reduction. The Eurozone faces an even greater challenge as the economic fortunes of member countries diverge.
Indeed, there are many factors which suggest that a loosening of ties with the Eurozone by British businesses is possible, if not already under way.
TORONTO — The Toronto stock market was slightly higher at the open amid rising gold stocks and economic concerns.
The S&P/TSX composite index rose 27.33 points to 12,885.82 while the Canadian dollar inched up 0.02 of a cent to 97.45 cents US.
European stocks slid deeper into the red on Tuesday and the euro fell on rising expectations that Greece is set for a default despite fresh international efforts to resolve the debt crisis.German Chancellor Angela Merkel sought to ease fears over a possible Greek bankruptcy, saying the 17-country eurozone had to stick together and that an "uncontrolled insolvency" must be avoided.US President Barack Obama warned overnight that the world economy would remain weak until the eurozone crisis was solved, as market anxiety mounted over debt woes in Greece, Spain and Italy.