Italy’s Prime Minister Mario Monti directed his not inconsiderable influence to German Chancellor Angela Merkel on Feb. 29, saying that despite her reluctance to discuss boosting Europe’s rescue fund right now, he still expects to have an agreement to beef...
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Photograph by Alessia Pierdomenico/Bloomberg
Italian Prime Minister Mario Monti speaks with Bloomberg's David Tweed on Feb. 29
Monti Expects Euro Debt Firewall Deal
Photograph by Petros Giannakouris/AP
Greece was downgraded again by S&P on Feb. 27
S&P Doesn’t Think Greece Is Unique
S&P took the historic decision on Feb. 27 of declaring Greece in “selective default.” I spoke with Moritz Kraemer, the head of sovereign ratings for S&P, who argued it’s simply a fact that Greece is in technical default as it...
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Photograph by Simon Dawson/Bloomberg
A sign at the central bank of Greece covered in graffiti on Feb. 12, 2012
Greece May Have to Accept Escrow Account for Aid
Now that the Greek parliament has voted to accept austerity terms necessary to obtain a second EU/IMF bailout, the action moves back to Brussels on Feb. 15, when euro-area finance ministers meet to decide whether to unlock the funds. (Update:...
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Portugal Bears Brunt of Greek Contagion
Poor Portugal. The country’s bonds have borne the brunt of investor frustration over Greece’s failure to reach an accord with private bondholders on writing down the value of their debt. The yield on Portugal’s 10-year bond soared yesterday with investors...
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Photographer: Jock Fistick/Bloomberg
A giant euro banner hangs on the side of the EU headquarters.
Europe Back From the Precipice?
As EU leaders gather for a summit this afternoon in Brussels, people are asking if Europe is stepping back from the precipice and moving into a more chronic phase of the debt crisis. My response is not yet, but we...
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Irish street protests against austerity measures have been relatively restrained
Coping With Austerity
On the same day that German Chancellor Angela Merkel again swatted down the idea of issuing joint euro bonds to help ease sovereign debt in peripheral euro zone nations, Germany’s own bond issuance, which fell short of objectives, caused market...
Read more »Must Democracy Be Sacrificed to Save Europe?
The European debt crisis has played havoc on the continent’s politicians. This year alone four countries have seen their governments fall—Ireland, Portugal, Greece, and Italy—the last two “without a shove from voters,” reported Bloomberg News yesterday in a story about...
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How Much Does Greek Growth Cost?
From 1986 up until today, the EU has spent 602.7 billion euros on helping the poorer regions of the bloc catch up with richer ones, according to European Commission data. The money has been funnelled through the so-called structural funds,...
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A Greek Euro coin.
Greece’s Alternatives to the Euro
Each member of the euro zone produces its own euro coins. One side of the coins is common to all members, but the other carries a design that is particular to each country. A complete uncirculated 2002 set of the...
Read more »What Keeps Greece in the Euro?
Will the Greeks say Yes or will they say No? When the prospect of a referendum on the Greek government’s austerity measures was raised, alarm bells rang across the markets. The reaction was swift. Still, before wagering it all on...
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