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

Euro’s Medicine May Be Making Greece’s Symptoms Worse

By RACHEL DONADIO and SUZANNE DALEY ATHENS — Only a month after Greece installed a new government, the country is facing renewed peril. Its official lenders are signaling a growing reluctance to keep paying the bills of the nearly bankrupt nation, even as the government is seeking more leniency on the terms of its multibillion-euro bailout.

Spain police, miners clash in Madrid protest

Associated Press. Spanish miners and sympathizers incensed with the nation’s seemingly endless austerity cutbacks clashed with riot police on one of Madrid’s most famed avenues Wednesday, and six demonstrators were hospitalized after police fired rubber bullets. Police made seven arrests, and two officers were injured. The miners’ march into the capital was the culmination for some … Continue reading

Cyprus becomes 5th eurozone state to seek bailout Cyprus becomes 5th eurozone nation to ask for a bailout as it struggles to rescue its banks

  NICOSIA, Cyprus (AP) — Cyprus on Monday became the fifth eurozone country to request financial aid from its partners in the troubled European currency union as it struggles to shore up its banks, which took heavy losses on Greek debt. The island nation’s government said in a terse statement that it required assistance following … Continue reading

Solidarity is Europe’s only hope

by James K. Galbraith In an opinion piece for DW’s Transatlantic Voices column, James K. Galbraith argues that neither growth nor austerity are the right remedies for the eurozone crisis. Instead, the focus should be on solidarity. The austerity moment is passing. Britain’s double-dip recession and Europe’s 11 percent unemployment show where austerity leads. Public … Continue reading

Why the All-Important Greek Election Changed Absolutely Nothing

On Sunday, Greek citizens voted for the euro. On Monday, investors voted against it. And so, an election that we expected to avert an international financial meltdown ultimately corresponded with one.

Here They Come: Ireland Demands Renegotiation Of Its Bailout Terms To Match Spain

Well that didn’t take long. The ink on the #Spailout is not dry yet (well technically there is no ink, because none of the actual details of the Spanish banking system rescue are even remotely known, and likely won’t be because when it comes to answering where the money comes from there simply is no answer) and we already … Continue reading

How Big Are the PIIGS? (Bigger than you may realize!)

“PIIGS” we are informed in the current Wikipedia entry “is a pejorative acronym used to refer to the economies of Portugal, Italy, Greece and Spain. Since 2008, the term has included Ireland, either in place of Italy or with an additional I.” With apologies, I am joining the ranks of contributors to such august publications as the New York … Continue reading

ECB rejects Madrid plan to boost Bankia

A Spanish plan to recapitalise Bankia, the troubled lender, by indirectly tapping the European Central Bank for cash, was bluntly rejected as unacceptable by the ECB, reports the Financial Times. News of the rejection came as Spain faces elevated borrowing costs in the bond markets, tries to persuade investors it can contain problems in a … Continue reading

If elections could change things, they’d be illegal

New York, NY – Were one to write a pre-election analysis in the glorious days of Greece’s ancien regime, one would most probably have to present and analyse the political positions of the main competing parties. Yet, this is one of the most outdated things one might want to do if one intends to say anything useful … Continue reading