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Eurointelligence: High noon, postponed
Greek parties fail to agree on a key aspect of the package - the request for pension reform; troika gives the Greeks 15 days to plug what is now a €300m gap; a eurogroup meeting of finance ministers takes place tonight to discuss the situation; the tussle also threatens to hold up the debt swap talks; insiders says there is still a little bit of wiggle room, but the debt swap still face a number of considerable risks; the Wall Street Journal reports that the ECB would sell its Greek bonds to the EFSF, which would resell them to Greece, a transaction that would yield a gain of €11bn for Greece;  other commentators are doubtful that such an agreement has already been reached; Ireland said it would consider an ECB participation in the Greek restructuring as a precedent; Francesco Papadia of the ECB talks about "mission accomplished"; German trade surplus narrows in December, while the pattern of exports shifts towards Brics and central and eastern Europe; Le Monde worries about France's decline as Germany's economic partner; The French court of auditors warns of a debt spiral in France; court also warns about risks building up at the Banque de France; ECB is likely to extend the collateral framework and lower quality requirements for Eurosystem central banks today; Wolfgang Proissl defends Mario Draghi's ,,morphine shot strategy"; Wolfgang Munchau, meanwhile, says there are four ticking time bombs under the eurozone, of which only one - the liquidity crunch - has been defused.


tens of millions of people stand to see their lives ruined because the bureaucrats at the ECB don't understand introductory economics -- Dean Baker
by Migeru (migeru at eurotrib dot com) on Thu Feb 9th, 2012 at 03:48:58 AM EST
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