Europe Economics Update Euro-zone Monetary Indicators Monitor (Jan.) Recent monetary data have revealed that the ECB’s generous lending has helped to reduce strains in interbank markets to some extent. However, money and credit growth have weakened further. 27th January 2012 · 1 min read
Europe Economics Update Debt deal will not end Greece’s problems Media reports suggest that Greece may be on the brink of agreeing a debt restructuring deal with private sector creditors. But while this might reduce the chance of a near-term disorderly default... 19th January 2012 · 1 min read
Europe Economics Update ECB stands firm on bond purchases The ECB today maintained both the level of official interest rates and its opposition to calls for it to take more decisive action to tackle the euro-zone’s debt crisis. 12th January 2012 · 1 min read
Europe Economics Update Merkel/Sarkozy summit adds to break-up risk Merkel and Sarkozy’s pledge to accelerate their contributions to the euro-zone’s bail-out fund following today’s summit was vaguely encouraging. But far more striking was their lukewarm support for... 9th January 2012 · 1 min read
Europe Economics Update Euro-zone Fiscal Monitor (Dec.) The latest fiscal data add to evidence that the ongoing austerity programmes in Southern Europe have failed to narrow these economies’ budget deficits as quickly as expected. 4th January 2012 · 1 min read
Europe Economics Update Euro-zone Monetary Indicators Monitor (Dec.) Recent monetary data have revealed that money and credit growth remain very subdued. The ECB’s latest efforts to improve commercial banks’ liquidity seem unlikely to have a meaningful impact on... 3rd January 2012 · 1 min read
Europe Economics Update Have we underestimated Germany? The recent rise in some of the German business surveys has prompted optimistic media reports about Germany saving the euro-zone, acting as Santa, being a twinkling Christmas star in the euro-zone... 21st December 2011 · 1 min read
Europe Economics Update Swedish Riksbank cuts rates and more likely to come The Swedish Riksbank’s decision to reduce interest rates is a timely reminder that even the strongest performing European economies are not immune from the effects of the euro-zone debt crisis. We... 20th December 2011 · 1 min read
Nordic & Swiss Economics Update Swedish Riksbank cuts rates and more likely to come The Swedish Riksbank’s decision to reduce interest rates is a timely reminder that even the strongest performing European economies are not immune from the effects of the euro-zone debt crisis. We... 20th December 2011 · 1 min read
Europe Economics Update The implications of a French downgrade The immediate, mechanical effect of a French credit rating downgrade might not be too severe as it has already been at least partly priced in by financial markets. But it could have disastrous... 19th December 2011 · 1 min read
Europe Economics Update Is the ECB doing more than we think? Recent changes to the ECB’s bank lending operations and the news that national central banks may lend to the IMF have raised hopes that support for the region’s most troubled economies is being... 13th December 2011 · 1 min read
Europe Economics Update ECB shatters hopes of a "silver bullet" While the ECB met expectations of a further cut in interest rates and greater support for banks today, it shattered hopes that it is about to fire a silver bullet into the heart of the debt crisis. 8th December 2011 · 1 min read
Europe Economics Update Markets’ euro optimism to prove short-lived again It is not hard to see why the financial markets have responded positively to the latest proposals to save the euro: they seem to open the door to immediate financial help from the ECB and provide a... 7th December 2011 · 1 min read
Europe Economics Update Italian prospects remain grim Recent euro-zone developments may have brought Italy back from the brink again. But Italy will still need years of financial assistance from the rest of the region and to go through years of severe... 7th December 2011 · 1 min read
Europe Economics Update Euro break-up will leave no country unscathed We expect a limited form of euro-zone break-up in the next two years to cause widespread economic disruption across the region. And with recent indicators already pointing to recession in a number of... 1st December 2011 · 1 min read
Europe Economics Update Euro-zone Fiscal Monitor (Nov.) The latest fiscal data suggest that Ireland remains on track to meet its budget deficit target for this year. But the near-term outlook for the public finances in Southern Europe is more downbeat. 30th November 2011 · 1 min read