Föhrenbergkreis Finanzwirtschaft

Unkonventionelle Lösungen für eine zukunftsfähige Gesellschaft

Posts Tagged ‘Euro’

Revisiting the euro’s north-south rift

Posted by hkarner - 9. November 2019

Date: 07-11-2019
Source: The Economist

Income gaps remain, but cross-border flows are more balanced

Since the euro zone was first engulfed by a sovereign-debt crisis a decade ago, northern member states have dished out plenty of strictures. “Greece, but also Spain and Portugal, have to understand that hard work…comes before the siesta,” advised Bild, a German tabloid, in 2015. Two years later, even as the crisis receded, Jeroen Dijsselbloem, then the Dutch finance minister, told southerners: “You cannot spend all the money on drinks and women and then ask for help.”

Northerners’ constant fear of underwriting southern irresponsibility has led politicians from Amsterdam to Helsinki to put the brake on banking reforms and fiscal integration across the zone. It has caused numerous fights over monetary policy, the latest of which is in full swing. On November 1st the European Central Bank (ecb) resumed quantitative easing (qe), the purchase of bonds using newly created money. The decision to do so, made in September, was roundly attacked by newspapers—and even former and current central bankers—in northern countries including Germany and the Netherlands. The complaints reflect savers’ dread of negative interest rates and a suspicion that easing lets indebted southern countries off the hook. Together this can make monetary policy seem like a source of transfers. Den Rest des Beitrags lesen »

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Rom verteidigt seine neue Schuldenpolitik

Posted by hkarner - 25. Oktober 2019

Finanzminister Gualtieri will mit expansiven Maßnahmen das Wirtschaftswachstum in Italien ankurbeln, heißt es im Brief nach Brüssel

Erhoffen von der neuen EU-Kommission in Brüssel Verständnis für ihre Wachstumspolitik auf Pump: Premier Guiseppe Conte und sein Finanzminister Roberto Gualtieri.

Rom/Brüssel – Die italienische Regierung von Giuseppe Conte hat mit einem Brief an die EU-Kommission auf die Bedenken Brüssels zu ihrem Haushaltsentwurf geantwortet. „Wir vertrauen darauf, dass unsere Bemühungen in Sachen Haushaltskonsolidierung und strukturelle Reformen zu einer weiteren Defizitsenkung führen werden“, schrieb der italienische Wirtschafts- und Finanzminister Roberto Gualtieri darin.

In dem Schreiben an EU-Wirtschaftskommissar Pierre Moscovici und an Kommissions-Vizepräsident Valdis Dombrovskis, das auszugsweise am Donnerstag veröffentlicht wurde, betonte Gualtieri, dass Italien Einsparungen in der öffentlichen Verwaltung in der Größenordnung von einer Milliarde Euro 2020 und von 1,2 Milliarden Euro in den Jahren 2021 und 2022 plane. Italien bemühe sich auch um eine Vereinfachung des Steuersystems.

Italien verlangt Flexibilität

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The Eurozone’s 2% Fixation

Posted by hkarner - 8. Oktober 2019

Daniel Gros is Director of the Centre for European Policy Studies.

The European Central Bank’s inflation target of “below, but close to, 2%” currently dominates economic policymaking in the eurozone. Moreover, the idea that this target supersedes the bloc’s fiscal rules seems to be gaining ground – with potentially worrying implications for financial stability.

BRUSSELS – Economic policy discussions in Europe used to be dominated by the number three, namely the 3%-of-GDP upper limit on national fiscal deficits. Although the fiscal rules enshrined in the Maastricht Treaty were in fact much more complex, public debate tended to focus on the 3% figure, especially when deficits ballooned during the euro crisis nearly a decade ago.

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Europe’s Banks Warn About Prospects

Posted by hkarner - 9. August 2019

Date: 08-08-2019
Source: The Wall Street Journal

Continent’s lenders are grappling with lower interest rates and geopolitical tensions

For Europe’s lenders, the hits keep on coming.

Banks in Germany, Italy and the Netherlands warned Wednesday that making money and improving their operations are becoming more challenging as already-low interest rates look set to tick lower.

Shares of Commerzbank AG , UniCredit SpA and ABN Amro Bank NV fell sharply as they struck a gloomy tone about their outlook in reporting second-quarter earnings.

A low-rate environment that has lasted longer than many expected has already taken a toll on the profitability of banks in the region. They are also grappling with a slowing economy, the impact of trade tensions between the U.S. and China and the possibility that the U.K. drops out of the European Union with no agreement.

“Banks will have to find ways to make money in a more challenging environment,” said Vincenzo Longo, a Milan-based strategist at IG Group . He also said that banks clearly had further to go in restructuring and that they would likely take a hit from the slowdown in manufacturing, particularly in Germany.


‘As client rates are close to zero, it will be increasingly difficult to offset the decline,’ said ABN AMRO Chief Executive Kees van Dijkhuizen.

Tumbling U.S. yields also took a toll on U.S. banks shares. The KBW Nasdaq Bank Index was down 3.1% Wednesday, bringing its drop in the past week to nearly 9.5% in another sign of unease about the health of the U.S. economy. Den Rest des Beitrags lesen »

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The Money’s More Than Free. Why Won’t Europeans Borrow?

Posted by hkarner - 24. Juli 2019

Date: 22-07-2019
Source: The Wall Street Journal

Which explanation you prefer determines whether you think the European Central Bank is right to be considering another cut

It is plausible that negative rates have worked, as eurozone investment since rates went negative in June 2014 has been slightly ahead of the U.S.

When it comes to interest rates, the U.S. and Europe are upside down.

A big worry about the expected interest-rate cut in the U.S. is that it will encourage too much borrowing, inflating bubbles in debt and equity markets. A big worry about the expected interest-rate cut in Europe is that it will discourage borrowing, with many companies, households and governments paying down debt even with negative central-bank rates. Den Rest des Beitrags lesen »

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The Central Banker Europe Needs

Posted by hkarner - 10. Juli 2019

Barry Eichengreen is Professor of Economics at the University of California, Berkeley, and a former senior policy adviser at the International Monetary Fund. His latest book is The Populist Temptation: Economic Grievance and Political Reaction in the Modern Era.

While having a president with specialized training as a monetary economist would benefit the European Central Bank, such training is not essential. If Christine Lagarde is confirmed for the position, Europe will learn that other attributes matter much more.

CAMBRIDGE – The selection of the International Monetary Fund’s managing director, Christine Lagarde, to succeed Mario Draghi as the next president of the European Central Bank caught most observers by surprise. Now the critics are making up for lost time. Some commentators object that Lagarde lacks experience as a central banker. Others complain that she lacks an advanced degree in economics.

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For Europe, There’s an Upside to Germany’s Slowdown

Posted by hkarner - 8. Juli 2019

Date: 07-07-2019
Source: The Wall Street Journal

Loss of momentum could coax the government in Berlin to open its wallet

Germany has emerged as a major victim of global uncertainties because of its heavy reliance on exports, which account for 47% of its economic output. Employees at a BMW factory in Leipzig.

Germany’s economic slowdown, though no doubt bad for Europe in the short term, could be helpful over a longer period by easing a rift between the region’s economically stronger north and weaker south over pro-growth policies.

The country accounts for nearly a third of all economic activity in the eurozone, but no European Union economy grew more slowly in the year through March, aside from Italy. That puts Germans more in sync with the rest of the region as global growth cools, Brexit drags on and trade tensions linger between the U.S. and China. Den Rest des Beitrags lesen »

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Lagarde Is the Right Choice

Posted by hkarner - 5. Juli 2019

Philippe Legrain

Philippe Legrain, a former economic adviser to the president of the European Commission, is a visiting senior fellow at the London School of Economics’ European Institute and the founder of Open Political Economy Network (OPEN), an international think-tank whose mission is to advance open, liberal societies. His most recent book is European Spring: Why Our Economies and Politics are in a Mess – and How to Put Them Right.

The nomination of Christine Lagarde to be the next president of the European Central Bank is a breath of fresh air for the stale, male-dominated institution. Incumbent President Mario Draghi may seem like a hard act to follow, but Lagarde has what it takes to succeed. She needs to be bold.

LONDON – The choice of Christine Lagarde, the managing director of the International Monetary Fund and a former French finance minister, to succeed Mario Draghi as president of the European Central Bank, is controversial. It should not be.

To be sure, the political horse-trading through which top European Union positions are allocated is unedifying. Lagarde was selected not in an open, merit-based appointment process, but rather as part of a backroom deal that also involved the nomination of Ursula von der Leyen, the German defense minister, to be the next president of the European Commission.But despite the opacity of the appointment process, and although she was chosen in part because she is a woman, French, and from the center-right European People’s Party, Lagarde would bring formidable qualities to the role. Den Rest des Beitrags lesen »

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Lagarde’s First Job as ECB Boss: Sway Germany

Posted by hkarner - 5. Juli 2019

Date: 04-07-2019
Source: The Wall Street Journal

Draghi’s successor faces critical decisions about policies that have been unpopular in Germany

Christine Lagarde .The ECB’s relationship with Germany has at times been strained.

FRANKFURT—Christine Lagarde may be world renowned as head of the International Monetary Fund, but her first big challenge as European Central Bank president would be to win over skeptics in her next home country: Germany.

She is set to take the reins as the ECB faces critical decisions in the coming months over how to support the eurozone’s sagging economy. That could mean expanding or relaunching a giant bond-buying program that has been criticized by German officials.

The ECB’s relationship with its biggest shareholder is crucial but has often been strained, even though the eurozone central bank is housed in Germany’s financial capital and modeled on the nation’s Bundesbank.

Ms. Lagarde, a former lawyer, will need to master that relationship quickly, assuming she gains the necessary approvals to succeed Mario Draghi as ECB president on Nov. 1. She was nominated for the post by European Union leaders on Tuesday.

Mr. Draghi and his predecessor, Frenchman Jean-Claude Trichet, both faced opposition in Germany, which ranged from public sparring to ECB resignations and lawsuits. Den Rest des Beitrags lesen »

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EU-Banken fehlen 135 Milliarden Euro für neue Kapitalregeln

Posted by hkarner - 3. Juli 2019

Gelder fehlen fast nur Großbanken

Die EBA spricht von einer Kapitallücke.

Frankfurt – Banken in der EU brauchen nach einer Studie der EU-Bankenbehörde EBA 135 Mrd. Euro, um die künftigen Kapitalvorschriften zu erfüllen. Die vollständige Umsetzung der sogenannten Basel-III-Regeln würde die Mindestkapital-Anforderungen um 24,4 Prozent erhöhen, erklärte die EBA am Dienstag.

Die Kapitallücke trifft fast nur Großbanken, die weltweit aktiv sind. Von den 135 Milliarden Euro entfielen nur 0,9 Milliarden auf mittelgroße Geldhäuser und 0,1 Milliarden auf kleinere Institute.

Neue Kapitalvorschriften

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