The recent calm in financial markets since the Cypriot bailout has bought more time for euro area governments under pressure. True, it has been far from completely plain sailing
One of the striking features of the European economy, since the start of this year, has been the dislocation between financial markets and the real economy. For all that they give misleading signals, the Purchasing Managers’ Indices (PMIs) suggest that euro area countries have remained firmly in recession so far this year,
At long last, things seem to be slowly changing in Europe. Having endured years of German-led austerity, the new Italian Government has signalled its desire to shift away from cutting spending towards generating growth and jobs. In French President Hollande, the Italians have a ready-made ally,
This morning, the Bank of England and the Treasury announced an extension to the flagship ‘Funding for Lending’ Scheme (FLS). The FLS will now be extended by one year until January 2015, and will cover lending to certain non-bank credit providers in addition to banks.
One of the most influential pieces of academic research in recent years was written by two US academics called Carmen Reinhart and Ken Rogoff. Putting together a vast dataset of growth and debt for different countries over the past 200 years or so
Over the past week it has become more than apparent that the British media has become elitist and racist in it’s prioritisation of news coverage.
With the passing of Baroness Thatcher earlier this week, many commentators have been reviewing her impact on the UK, and the legacy that will outlive her. It is for others to talk about her impact on personal attitudes, Europe, legislative changes, politics and societal structures – if indeed there is such a thing as society. But it is also important to consider her economic legacy.
Whilst London, Surrey and the home counties blossomed under Margaret Thatcher’s tenure as Prime Minister, South Wales was utterly destroyed by her iron will.
China’s elected President Mr. Xi Jinping made his first inaugural trip abroad to Moscow.
From the Chinese point of view Russia was first a mentor, than an enemy and now a partner. The two countries have maintained an unsentimental partnership, which was directed primarily against the west.
April 2013 will see arguably the biggest shake up of tax and benefits for a generation. The bedroom tax, where people in social housing with a spare bedroom lose up to 25% of their housing benefit, is now in force. The normal annual increase in benefits in April will be just 1% this month, representing a real-terms cut in benefits for the first time ever.
At the eleventh hour, Cyprus seems to have managed to agree a bailout with its euro area partners. Using a new law governing bank failures, the two big troubled banks in Cyprus – Laiki and Bank of Cyprus – will be restructured,
It now looks very likely to me that we will see the breakup of the euro area. Cyprus has until Monday to find the EUR6bn or so that it needs to contribute towards a bailout package that could recapitalise its banks and provide the government with external funding.