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Euro Crisis News Overview
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The European Commission and Italy are floating ideas on a possible bail-out of the country’s banks. #EU #Commission #bailout #Italy #Renzi  
Rome hopes to convince the European Commission of side stepping EU rules after Italy's already troubled banks were hit hard by Brexit.
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Yes.. Bail them out the same way they bailed German banks through Portugal...
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Even though the ECB’s Mario Draghi has committed to do “whatever it takes,” the Eurozone has become a dangerous place for savings and investment.
Whatever the outcome of the Brexit referendum next week, it would appear that nothing can stop a systemic crisis developing in Europe. The two issues are unrelated, though Brexit could be blamed as a trigger. Brexit will come and go, but a European banking failure will remain with us, whatever happens on June 23rd.

#EuroCrisis #Eurozone  
 
Political instability for the EU is a significant and visible threat, but is not the immediate problem, which is financial. As a result of savings and spending imbalances, none of the core Eurozone states can stand on their own.
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Why, then, my downbeat tone about Remain?
Part of the answer is that the impacts of Brexit would be uneven: London and southeast England would be hit hard, but Brexit would probably mean a weaker pound, which might actually help some of the old manufacturing regions of the north.
More important, however, is the sad reality of the E.U. that Britain might leave.
The so-called European project began more than 60 years ago, and for many years it was a tremendous force for good. It didn’t only promote trade and help economic growth; it was also a bulwark of peace and democracy in a continent with a terrible history.
But today’s E.U. is the land of the euro, a major mistake compounded by Germany’s insistence on turning the crisis the single currency wrought into a morality play of sins (by other people, of course) that must be paid for with crippling budget cuts. Britain had the good sense to keep its pound, but it’s not insulated from other problems of European overreach, notably the establishment of free migration without a shared government.
You can argue that the problems caused by, say, Romanians using the National Health Service are exaggerated, and that the benefits of immigration greatly outweigh these costs. But that’s a hard argument to make to a public frustrated by cuts in public services — especially when the credibility of pro-E.U. experts is so low.
For that is the most frustrating thing about the E.U.: Nobody ever seems to acknowledge or learn from mistakes. If there’s any soul-searching in Brussels or Berlin about Europe’s terrible economic performance since 2008, it’s very hard to find. And I feel some sympathy with Britons who just don’t want to be tied to a system that offers so little accountability, even if leaving is economically costly.
Britons have a choice between bad and worse.
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Daniel Gros slams the IMF's biased assessments of Greece's debt sustainability and the high cost of its loans.
Eurozone finance ministers and the IMF have agreed with Greece to begin providing some debt relief to the country, and to release $10.3 billion in bailout funds. But all parties would have been better off had the IMF been cut out of the deal, in favor of greater reliance on European loans.
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Buying the debt of some of Europe’s biggest companies is an unprecedented move [for the European Central Bank] and comes on top of the ECB purchasing 80 billion euros worth of mostly government bonds each month – which hasn’t had a significant effect on the region’s growth or rock-bottom inflation.
The European Central Bank has started buying corporate bonds as part of its latest effort to get businesses to borrow and spend, thereby boosting the eurozone economy and causing inflation to rise. Buying the debt of some of Europe’s biggest companies is an unprecedented move and comes on top of the ECB purchasing 80 billion euros worth of mostly government bonds each month – which…
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such a scam
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None of this bodes well for a serious program of eurozone reform, which would have to include a genuine banking union, a limited fiscal union, and much stronger mechanisms of democratic accountability. And time is not on Europe’s side, as external pressures from the likes of Turkey and Russia – both of which are exploiting the discord to their advantage – compound Europe’s internal political strife.

#EuroCrisis #Eurozone #Brexit  
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SOROS: '...Ahora el escenario catastrófico que muchos temían se materializó, con lo que la desintegración de la UE es prácticamente irreversible. A la larga puede que la salida de la UE deje a Gran Bretaña relativamente mejor que otros países o no, pero en el corto a mediano plazo su economía y su pueblo van a sufrir considerablemente...'

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Those skeptical of using a common currency to drive closer integration in Europe have always argued that joining the euro system would limit policy flexibility, such as the ability to devalue the national currency during economic downturns or use deficit spending to encourage growth. And they said problems would inevitably arise because of the stark economic differences among the countries sharing the currency.
Each proved true. The economic crisis in 2007-2008 plunged the bloc into a cycle of crises from which it still has not recovered. The disparities among eurozone countries were exposed, and to save the currency, northern countries led by Germany bailed out their desperate southern counterparts.
The eurozone became divided between debtors and creditors rather than equal partners.

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Generations growing up between the 1980s and the 2000s saw how an expanding Europe brought tangible benefits — borderless travel, job and educational mobility within the bloc, rising prosperity. Poorly governed countries came under pressure from Brussels to improve. But as the bloc expanded, decision-making also became more unwieldy. Frictions inevitably arose, and old resentments between member states were never fully scrubbed away. Tensions also increased between European institutions and national governments over sovereignty.
This has meant little political space for the deep reforms — and possible further integration of political powers — that some advocates say are needed in Brussels. Many analysts say that even if Britain remains in the bloc, the likelihood of the union’s undertaking significant political reforms is slim until after the national elections in France and Germany in 2017. Doing something bold in Brussels before then could spur an electoral backlash.
So the European Union will wait to see what Britain does, and then, possibly, wait some more.
Tribulations for the euro, a debt standoff with Greece and a flawed approach to migration all inflamed the angry nationalism spreading across the Continent and Britain.
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"Are we going to sanction Portugal for applying the exact formula it was told to by the European Commission?"
The leftist government in Lisbon wants to cut debt and deficit while restoring workers’ pay and rights.
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Europe is at risk of suffering lasting economic damage from weak productivity and low growth, the European Central Bank's president warned on June 9, underscoring his argument that monetary policy alone cannot end the bloc's economic malady. The ECB has been easing policy aggressively to boost growth and inflation in recent years with little to show for its efforts, fuelling arguments that monetary policy was at its limits and governments needed to help out. "We do not let inflation undershoot our objective for longer than is avoidable given the nature of the shocks we face," Mario Draghi told the Brussels Economic Forum. "For others, it means devoting every effort to ensuring that output is returned to potential before subpar growth causes lasting damage."
Europe is at risk of suffering lasting economic damage from weak productivity and low growth, the European Central Bank's president warned on Thursday, underscoring his argument that monetary policy alone cannot end the bloc's economic malady.
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In both Italy and France, the priority is to defend the already protected at the expense of the rising number of excluded. In Italy, 15 million people out of a population of 60 million now live in some form of deprivation, including over 8 million in a condition of serious economic hardship. In France, millions of long-term unemployed and young people especially those without qualifications face little prospect of employment.
It is doubtful if the eurozone would survive a major debt crisis in any core country such as Italy or France. If a financial crisis is to be avoided, Italy and France desperately need structural reforms, to increase growth and competitiveness.
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Story
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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...