EUROPE: Eurozone economic slump could last until 2010, says ECB

Politicians in Greece and Italy failed to do the job. Prime Ministers in both countries went down in flames.However, it has been a struggle to find anyone to replace them with. Politicians have been bickering over replacements ever since the leaders agreed to resign.The latest proposal, and one we will likely see in Greece and Italy is "technocracy", rule by well-respected economic experts, who supposedly will know what to do.Rise of the Technocrats

In an effort to stimulate small and medium (SME) lending the ECB considers acquiring banks toxic debt of the periphery. Via mish-modified translate from Spanish Libre Mercado.

BRUSSELS — Inflation in the eurozone has fallen to a three-year low and unemployment hit a new record, cementing expectations of an interest rate cut by the European Central Bank later this week. Inflation tumbled to 1.2% in April, the lowest level since February 2010 and the biggest monthly drop in more than four years, the EU’s statistics office Eurostat said on Tuesday, reflecting an economy mired in recession.

BRUSSELS — Confidence in the eurozone’s economy fell further in April, data showed, strengthening the case for a cut in interest rates this week by the European Central Bank. The eurozone is facing a difficult road out of recession and has seen a souring of the mood among companies and consumers since March, after an optimistic start to the year was disrupted by turmoil in Cyprus and Italy.

Lucas Papdemos, former European Central Bank Vice-President, appointed Thursday to head the temporary coalition government

While fourth quarter 2012 earnings results will again garner attention this week, investors may also be looking overseas to gauge market direction, since this week holds the first meeting of the year for European finance ministers. It is worth remembering that each spring for the past three years, the S&P 500 has started a slide of about 10% during the second quarter, led by events in Europe.