Europe Economics Update Can the new rescue package solve Greece’s problems? The new details on the second rescue package for Greece that have emerged over the past week or so have not altered our view that Greece’s outstanding debt burden remains unsustainably high. A second... 2nd August 2011 · 1 min read
Europe Economics Update Euro-zone Fiscal Monitor (Jul.) It is becoming increasingly clear that some of the peripheral economies will struggle to meet their budget deficit targets this year. And the new Greek package, like its predecessors, is unlikely to... 2nd August 2011 · 1 min read
Europe Economics Update Euro-zone Monetary Indicators Monitor (Jul.) The latest ECB Bank lending survey suggests that conditions in the euro-zone banking sector remain far from normal, supporting our view that domestic demand in the region as a whole will struggle to... 29th July 2011 · 1 min read
Europe Economics Update Greece needs much more than a bank levy News that a bank levy may be used to help fund Greece’s second rescue package suggests that eurozone policymakers are more concerned about appeasing taxpayers than adopting bold and decisive measures... 21st July 2011 · 1 min read
Europe Economics Update Last chance saloon for euro-zone policymakers? This week’s crucial summit could provide the last chance for euro-zone policymakers to get a grip on the region’s debt crisis. Anything other than a very decisive response which could be applied not... 20th July 2011 · 1 min read
Europe Economics Update Italy’s troubles raise risk of euro-zone break-up The growing recognition that highly indebted economies need more than temporary loans has caused the spotlight to turn on Italy. With EU taxpayers unlikely to stump up enough cash to rescue such a... 14th July 2011 · 1 min read
Europe Economics Update The beginning of the end for the euro? The continued failure of European policymakers to agree on a new package to support Greece and the growing signs that larger economies like Spain and Italy are being dragged further into the crisis... 13th July 2011 · 1 min read
Europe Economics Update ECB takes a hard line After hiking interest rates to 1.5% as expected, the ECB took a hard line today on both conventional policy and the prospect of Greek debt restructuring. We think that it will eventually soften on... 8th July 2011 · 1 min read
Europe Economics Update Swedish Riksbank hikes rates and signals more to come The Swedish Riksbank once again raised interest rates and reiterated that it expects more to come. While we expect further hikes in the short term, we think that the pace of monetary tightening will... 6th July 2011 · 1 min read
Nordic & Swiss Economics Update Swedish Riksbank hikes rates and signals more to come The Swedish Riksbank once again raised interest rates and reiterated that it expects more to come.While we expect further hikes in the short term, we think that the pace of monetary tightening willbe... 5th July 2011 · 1 min read
Europe Economics Update Hidden costs could hinder Portugal’s fiscal efforts The Portuguese government’s latest efforts to implement extra fiscal measures to ensure it meets its budget deficit target are encouraging. But even if the Government manages to push through the huge... 1st July 2011 · 1 min read
Europe Economics Update Euro-zone Monetary Indicators Monitor (Jun.) The latest data show that euro-zone money and credit growth remain subdued, supporting the view that CPI inflation will fall below the ECB’s target as the boost from energy and food subsides. While a... 1st July 2011 · 1 min read
Europe Economics Update Euro-zone Fiscal Monitor (Jun.) While plans for a Greek debt roll-over and a second bail-out should ease immediate default concerns and funding pressures, Greece is still struggling to rein in its budget deficit, highlighting the... 30th June 2011 · 1 min read
Europe Economics Update Greek disaster averted, for now at least The fact that the Greek parliament has passed the Government’s medium-term fiscal plan clearly reduces the chances of a near-term disaster, but the country remains in a precarious position. 30th June 2011 · 1 min read
Europe Economics Update Bank roll-over plan a small step forward for Greece The French plan for banks to roll over a significant chunk of their maturing Greek government debt could significantly reduce Greece’s near-term funding pressures. But we doubt that the roll-over plan... 29th June 2011 · 1 min read
Europe Economics Update Will Ireland and Portugal roll over their debt too? The Irish and Portuguese public finances are not in as precarious a position as those of Greece, but we think that there is a strong chance that both economies will eventually have to follow in Greece... 22nd June 2011 · 1 min read
