Serb government tightens grip on central bank despite EU, IMF warning

BELGRADE (Reuters) – Serbia’s Socialist-led government stepped up control over the central bank in the struggling ex-Yugoslav republic on Saturday, ignoring IMF criticism and a warning that the move would hurt its bid to join the European Union. Parliament adopted amendments to the law on the National Bank of Serbia, as the government seeks to … Continue reading

ECB Plans to Set Yield Targets for Bond Purchases

Interest rates on Spanish sovereign bonds have been rising to dangerous levels in recent weeks. Now, SPIEGEL has learned that the European Central Bank plans to use a new instrument to stop the trend: The bank is considering setting yield targets on the bonds of euro-zone countries. Should interest rates exceed those levels, the ECB … Continue reading

Eurozone crisis will last for 20 years

By Wolfgang Münchau I always wondered who buys risky assets after one of these “historic” statements from the European Council. Sometimes the rally lasts for hours. Other times it lasts for days. The last one ended after less than a week; Italian and Spanish spreads are now above pre-summit levels. The consensus among observers had … Continue reading

Finland Threatens to Leave Euro-Zone

Finland stood out for asking for collateral from Greece and later Spain. Now, Finland’s finance minister Jutta Urpilainen heightened the tone regarding the situation in the euro-zone and hinted that Finland would rather leave the zone than pay others’ debts. In an interview with the Finnish Kauppalehti daily, Urpilainen said that Finland will not crash with the euro-zone, … Continue reading

ECB warns Greece as ministers plan softer bailout bid

By Harry Papachristou and George Georgiopoulos (Reuters) – The European Central Bank told Greeceon Monday not to waste time trying to renegotiate its international bailout as government ministers hashed out a plan for easing its punishing terms before a review by the country’s lenders. Echoing Greece’s euro zone partners, ECB policymaker Joerg Asmussen signalled that Prime Minister Antonis … Continue reading

Angela Merkel, swimming instructor

WHEN warnings sound that the end of the euro is nigh, all eyes turn to Angela Merkel, the German chancellor. Germany must “assume its part” in saving the currency, says Spain’s economy minister, Luis de Guindos. If there is rescuing to be done, Germany is the obvious rescuer. Yet rather than toss out the lifebelt, … Continue reading

Angela’s vision

IN THESE times of tribulation for the euro, Germany offers a prophecy. One day, when the euro zone has got beyond the wilderness of austerity and structural reform, it will be rewarded with prosperity. Europe will have worked off its debt and become more competitive. Markets will see that the real problems of the world … Continue reading

From Nazi to Terminator, Europe’s media target Merkel

By Madeline Chambers (Reuters) – Demonised in Europe’s media as a red-eyed Terminator robot, a flabby centre-fold pinup and a fleshy Roman god eating Greeks, German Chancellor Angela Merkel has become the subject of a new wave of vitriol for her tough stance on the euro zone crisis. Already a figure of hate in Greece … Continue reading

Angela Merkel’s mania for austerity is destroying Europe

The German Chancellor is terminating growth and pushing us towards a new Depression. BY MEHDI HASAN Which world leader poses the biggest threat to global order and prosperity? The Iranian president, Mahmoud Ahmadinejad? Wrong. Israel’s prime minister, Binyamin Netanyahu? Nope. North Korea’s Kim Jong-un? Wrong again.

Greece as Victim

Paul Krugman Ever since Greece hit the skids, we’ve heard a lot about what’s wrong with everything Greek. Some of the accusations are true, some are false — but all of them are beside the point. Yes, there are big failings in Greece’s economy, its politics and no doubt its society. But those failings aren’t … Continue reading