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Euro Crisis News Overview
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But its neighbors need German demand for their goods and services far more than they need Germany to set an example of fiscal prudence. It is clear—given the risk of a debt-deflation trap in Germany’s eurozone partners—that successful adjustment in the eurozone can only come if German prices and wages rise faster than prices and wages in the rest of the eurozone. The alternative mechanism of adjustment—falling wages and prices in the rest of the eurozone—won’t work.

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Germany’s ongoing fiscal surplus contributes to Germany’s massive current account surplus, and the large and growing external surplus of the eurozone (the eurozone’s surplus reached €350 billion in the last four quarters of data, which now includes q2). The external surplus effectively exports Europe’s demand shortfall to the rest of the world, and puts downward pressure on global interest rates.
It turns out Germany has fiscal space even by German standards! Germany's federal government posted a 1.2 percent of GDP fiscal ...
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That leaves the fourth explanation: the euro is more to blame than the policies and structures of individual countries. The euro was flawed at birth. Even the best policymakers the world has ever seen could not have made it work. The eurozone’s structure imposed the kind of rigidity associated with the gold standard. The single currency took away its members’ most important mechanism for adjustment – the exchange rate – and the eurozone circumscribed monetary and fiscal policy.

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Joseph Stiglitz warns the eurozone against trapping its members in an untenable marriage.
To say that the eurozone has not been performing well since the 2008 crisis would be an understatement. Unless its authorities make seven changes, its members will inevitably conclude that they are trapped in an untenable marriage.
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One only has to look at Mr Juncker to understand why the EU is in such a mess. Juncker's latest notion " why do we need borders, " borders on the verge of madness. So intent is this fool set to carry out the European ideal, he and the other fool Tusk are prepared to sacrifice every ideal of democracy to achieve " their " dream.
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The International Monetary Fund (IMF) is among the view Greece can't recover without debt relief.
But Germany is loathe to allow the country off the hook for money owed.
Critics believe it's now only a matter of time before Greece is back in the limelight for all the wrong reasons.
George Pagoulatos, professor of European politics and economy at Athens University told the Guardian: “No economy can withstand endless recession and stagnation.
“At some point there could be a change of preferences, with forces who would want to continue outside the euro."

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GREECE'S troubled economy remains crippled with its citizens paying the price - one year on from the financial meltdown which pushed the eurozone to the brink.
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While some of the bonds are strong investments, the ECB is gambling with European Union (EU) cash by purchasing bonds deemed risky.
Bonds bought from Lanxess, RWE, Metro and K+S have all been marked as BBB- by financial rating agency Standard and Poor's.
The ECB has promised to reach a two per cent level of inflation by March next year, but with inflation at 0.2 per cent this month, the end goal is looking unlikely.

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THE European Central Bank (ECB) has splurged almost €1trillion on bonds in the last 18 months in a desperate bid to prop up the ailing eurozone.
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This comes as no surprise. The ECB have stated so many times their intention to support the Euro, irrespective of the cost! This article confirms beyond any doubt this is the case.
I would very much like to see the " true " cost of the Euro. The figures must run into several trillions in maintaining this appalling failure.
Remember, Italy's currency failure is just around the corner. 
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Neither breaking up the euro bloc nor trying to impose deeper integration on all of the nations involved is an acceptable way forward. But a smaller common-currency club combined with a wider trading arrangement for those who want or need the flexibility and sovereignty of their own currency and their own central bank would have a better chance of success than the halfway house proposed by economist Joe Stiglitz.
Brexit is an opportunity to create a more integrated core with more flexibility for others.
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It's not 'my proposal', just an article reference :-)
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The nation has been assigned some €326bn in bailout loans since May 2010 – the biggest rescue programme in global financial history. Yet the fear that it is locked in an economic death spiral was given further credence last week when Eurobank analysts announced that consumption and exports had also fallen, by 6.4% and 7.2%, in the second quarter of the year.

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Greece is still buggered, there are still 100,000 people stuck on the Jordanian berm without adequate food or medical care, and if a substantial minority of your population are prepared to die while runnng people down in trucks there is nothing you can do about it. Thank Christ for new lambs and sunshine down here at the bottom of the planet.
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Yanis Varoufakis argues that the turn toward negative interest rates reveals the limits of technocratic policymaking.
Simone Weil once said, “If you want to know what a man is really like, take notice of how he acts when he loses money.” Likewise, if we want to know what our societies are really like, we must take notice of how they react to negative interest rates.
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The UK’s Brexit referendum is providing us with the first significant test of the new regulatory system. This column asks whether banks have sufficient capital and liquidity to withstand the ‘shock’. Unless the global financial system as a whole is well capitalised, it remains only as strong as its weakest link. And while the UK authorities have done a reasonable job of strengthening their banks and financial system, a number of large European banks are seriously undercapitalised.
The UK’s Brexit referendum is providing us with the first significant test of our sparkling new regulatory system. Everyone knew about the referendum months in advance, giving them plenty of time to prepare. Yet, we are left with some fundamental questions related to global financial stability. Do banks have sufficient capital and liquidity to withstand the ‘shock’? Will financial markets continue to serve their key functions?  Or, is the financi...
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The eurozone is facing a mounting crisis that combines indecisive leadership, uncertainty following Britain’s vote to leave the EU, few indications of meaningful economic growth on the horizon after years of low growth and stagnation, and struggling banks whose problems are compounded by the failure to establish a comprehensive banking union.

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Negative interest rates are taking the world of finance into uncharted waters. The impact will be damaging for most economies, especially the 19 member countries of the eurozone. The eurozone is facing a mounting crisis that combines indecisive
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Once the Italian economy collapses and the actual " gross " debt of the Eurozone is realized, perhaps then; the ECB, and all those involved in this appalling financial scenario will finally realize the " true " cost of their dream. Worst of all, the countries most affected in southern Europe will have to rebuild their economies from scratch. The overall economic impact has yet to be seen.
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A single currency designed to hold together a region with enormous economic and political diversity is almost incapable of working, according to the economist.
He wrote: "A small country in Europe could, for instance, be in a recession when the rest of Europe is doing well."
The situation Stiglitz outlines can be seen in Greece, which has faced a devastating depression, while Germany has been performing relatively well.
He said: "It was not simply that the eurozone was not structured to accommodate Europe’s economic diversity; it was that the structure of the eurozone, its rules and regulations, were not designed to promote growth, employment, and stability."

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THE eurozone was flawed at birth and is destined to collapse unless huge changes are made to its single currency, according to a Nobel-Prize winning economist.
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Writes Barry Eichengreen:" One objection to imposing conditions on the ECB is that the eurozone, as a regional entity, is not an IMF member. Only countries, not regions, are entitled to draw IMF resources. But nothing prevents the IMF from demanding policy commitments from regional bodies when lending to their member governments. This has been done before when African and Caribbean monetary unions and central banks were involved."
The IMF's Independent Evaluation Office, established after Asia's 1998 financial crisis to assess IMF policies and programs at arm's length, has issued a comprehensive critique of the Fund’s role in Europe’s post-2008 crisis. The takeaway: money talked loudest.
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It is now clearer than ever that EU member states prioritize domestic political imperatives over common rules – and Europe’s common good.

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DANIEL GROS against fine's forgiveness to Spain and Portugal about SGP:
'...the decline in support for European fiscal rules carries serious risks. If the most concrete elements of the eurozone’s governance framework are not applied rigorously, what will compel member states to undertake reforms and stabilize their debt levels? Vague exhortations will not work. It seems that the crisis, and the untenably large risk premia for highly indebted governments that followed, has already been forgotten.
Sometimes the most important thing that happens is what doesn’t happen – or, to paraphrase Sherlock Holmes, it’s the dog that doesn’t bark in the night. The lack of response to the European Commission’s non-enforcement in Spain and Portugal of the terms of the Stability and Growth Pact is one of those times.
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The alternative would have been for them to admit that with the eurozone as it is currently constructed, the less efficient countries can't compete with the efficient ones, thus lag further and further behind.
They'll still have to do that at some point, but admitting the truth would have meant that either the eurozone would have to be turned into a transfer union, or dissolved. Neither is acceptable to Germany.
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News items from the worlds media about the current euro crisis
Introduction
This page contains a running list of news articles about the current crisis in the Euro zone.
These are mostly whatever I stumble upon...