Category Archives: European Central Bank

Coronavirus has revealed the EU’s fatal flaw: the lack of solidarity | Shahin Vallée

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There has been little political will to pool taxes, borrowing and spending to support states worst hit. But it is the only way out

The European summit last week was hailed as a moment of truth. In a recent interview, France’s president, Emmanuel Macron, laid out how European leaders had a rendezvous with history and needed to come together, and show that Europe under duress was able to respond with a common voice and with common means to the Covid-19 crisis. By all measures, this rendezvous with history was missed. European leaders in effect agreed to keep calm and carry on.

They endorsed a roadmap to exit lockdown after each country had in fact already decided and announced their own uncoordinated exit plans. In some countries, such as Germany, deconfinement measures are not a prerogative of the federal government and coordinating between states is challenging enough, let alone coordinating with other countries.

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EU strikes €500bn relief deal for countries hit hardest by pandemic

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Compromise reached after Netherlands relents on ‘economic surveillance’ of beneficiary nations

A messy compromise to unlock €500bn (£438bn) of EU support for countries hit hardest by the coronavirus pandemic has been struck after Italy’s prime minister, Giuseppe Conte, warned that the existence of the bloc was at stake.

EU finance ministers on a video conference call struck a deal late on Thursday after the Netherlands shifted on a demand for “economic surveillance” of countries benefiting from €240bn of credit lines via the European stability mechanism, a bailout fund for struggling member states.

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ECB U-turn shows it fears coronavirus could destroy eurozone project

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Bank now realises Europe will sustain grievous economic damage from Covid-19

Weak. Clumsy. Behind the curve. The European Central Bank took stick for its initial response to the Covid-19 pandemic – and rightly so.

Those accusations can no longer be levied after the ECB used an emergency meeting to launch a gigantic new package of quantitative easing (QE) – the electronic money creation device that has become a key tool for central banks since the financial crisis of 2008.

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Fed bids to shore up confidence after worst week in 12 years

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Pledges of help from EU, China and Germany plus declaration of US emergency produce mild rally after torrid week

The world’s most powerful central bank, the US Federal Reserve, is preparing a fresh attempt to shore up investor confidence despite a late rally on Wall Street on Friday that ended a torrid week for stock markets on a more positive note.

Fresh pledges of help from China, Germany and the European commission combined with Donald Trump’s declaration of a national emergency over coronavirus to reassure investors after an ordeal for equities on both sides of the Atlantic that echoed the depths of the banking crisis.

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Climate emergency: Lagarde says ECB must step up action

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Bank president indicates she will move bank beyond traditional remit of controlling inflation

Christine Lagarde has said the European Central Bank should do more to help tackle the climate emergency, as she came under pressure from MEPs to step up action against global heating.

In a strong hint that as president she would move the ECB beyond its traditional remit of controlling inflation, Lagarde said the bank would incorporate the climate threat into both its economic forecasts and in its capacity as watchdog of the financial system.

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Christine Lagarde calls for more public investment in first ECB speech

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President of the European Central Bank says US/China tariff war should be seen as an opportunity

Christine Lagarde has called for European governments to boost innovation and growth with higher rates of public investment, in her first major speech as president of the European Central Bank.

Speaking to an audience of bankers in Frankfurt, Lagarde said that rising trade barriers triggered by the US/China tariff war should be grasped by European governments as an opportunity to build a stronger internal market.

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ECB announces fresh stimulus as eurozone economy falters

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Mario Draghi says bank will reboot quantitative easing in month Lagarde succeeds him

The European Central Bank has announced a fresh stimulus package in an attempt to prevent the fragile eurozone economy from grinding to a halt, with an interest rate cut and plans to pump €20bn (£19bn) a month into the financial markets.

In one of his final acts in his ECB presidency, before Christine Lagarde takes charge in November, Mario Draghi said governments across the eurozone needed to take greater steps to reboot growth by ramping up public spending or cutting taxes.

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German recession fears rise as industrial output tumbles – business live

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Rolling coverage of business, economics and markets as factories in Europe’s largest economy stutter

Eurozone growth came in unchanged on its third estimate: 0.2% growth in the second quarter of the year.

A minor beat on the headline year-on-year growth rate, remaining at 1.2% against 1.1% expectations, but otherwise no shocks.

Labour has confirmed that it will not vote for an election on Monday even if a bill intended to stop a no-deal Brexit passes before then.

If we vote to have a general election, then no matter what it is that Boris Johnson promises, it is up to him to advise the Queen when the general election should be. And given that he has shown himself to be a manifest liar, and someone who has said that he will die in a ditch rather than stop no deal, and indeed his adviser, [Dominic] Cummings, has been swearing and shouting at MPs saying they are leaving on 31 [October] no matter what, our first priority has to be that we must stop no deal and we must make sure that that is going to happen.

Related: Brexit: Labour confirms it will not vote on Monday for early election - live news

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Investors await signal on fresh ECB economic stimulus – business live

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Rolling coverage of the latest economic and financial news as Mario Draghi expected to prepare central bank for interest rate cuts

It will be too late for the ECB’s interest rates decision, but the latest measure of German business confidence from the influential Ifo Institute shows that morale has sagged more than expected in July.

The closely followed measure fell to a reading of 95.7 – well below the consensus expectations of 97.1.

Boris Johnson is planning to set out his “priorities for government” in his first appearance as prime minister in the house of commons – at about 10:30am BST.

Perhaps he can shed some more light on what will be happening by 31 October, the Brexit deadline.

Following Business Qs, there will be one government oral statement in the @HouseofCommons today:

The Prime Minister - Priorities for Government

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Christine Lagarde faces ECB test of legendary diplomatic skills

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European Central Bank provides an arena split between anti-austerians and expansionists

Christine Lagarde will take up the position of head of the European Central Bank as a self-confessed economic outsider who has preferred to emphasise her ability as a listener and tough negotiator during her seven years as managing director of the International Monetary Fund.

A lawyer by training, the former French finance minister is credited with turning around the Washington-based IMF after it was thrown into turmoil by the abrupt resignation of her predecessor Dominique Strauss-Kahn following unproven allegations of sexual assault and attempted rape.

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European Central Bank says Latvia’s ABLV failing, to wind up

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U.S. Interior Secretary Ryan Zinke has changed a proposed overhaul of his department with a new organizational map that more closely follows state lines instead of the natural boundaries he initially proposed. U.S. Interior Secretary Ryan Zinke has changed a proposed overhaul of his department with a new organizational map that more closely follows state lines instead of the natural boundaries he initially proposed.

European Central Bank officials cautious despite recovery

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Fans of President Donald Trump who use marijuana say Attorney General Jeff Sessions' move to tighten federal oversight of the drug is the first time they've felt let down by the man they helped elect. Missouri Gov. Eric Greitens acknowledges he was "unfaithful" in his marriage but denies allegations that he blackmailed the woman he had an extramarital affair with to stay quiet.

A Fresh Bailout Deal for Greece

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Greece and its international creditors have struck a deal that would allow the country to receive bailout funds in exchange for more cuts to government pensions and higher taxes. Under the terms of the agreement, Greece will, among other things, cut pensions in 2019 and reduce the amount at which taxes must be paid in 2020 in order to save 2 percent of gross domestic product.

Hans Tietmeyer, Former Bundesbank President, Dies at Age 85

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Former Bundesbank President Hans Tietmeyer, the last guardian of the German mark and one of the architects of Europe's single currency, has died. He was 85. "Hans Tietmeyer was an outstanding president, who always acted with a clear and firm hand that followed the goal of monetary stability," Bundesbank President Jens Weidmann said in the statement.

Asian stocks rise as Clinton, Trump argue economic policy

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This July 16, 2013, file photo, shows a Wall Street street sign outside the New York Stock Exchange. Major U.S. stock indexes edged mostly higher in early trading Wednesday, Oct. 19, 2016, as investors sized up the latest company earnings and new data showing residential construction slowed in the previous month.