Stability bonds. That is the new moniker given by the European Commission to euro bonds as it moves toward presenting its most definitive proposal yet for the debt pooling measure on Wednesday.
Indeed, European Economic and Monetary Affairs Commission Olli Rehn was in Berlin on Tuesday to tout Brussels' three-option studyon how bonds issued jointly by the 17 euro-zone member states could help stem the debt crisis.
Niall Ferguson, Professor of History at Harvard University, has written a tendentious new book, “Civilization,” which asserts, with similar certainty, that we are now living through “the end of 500 years of Western predominance,” that while China is on the rise, the question is not whether East and West will clash, but whether “the weaker” — that is, the United States and Europe — “will tip over from weakness to outright collapse.”
Eurogroup chief Jean-Claude Juncker has been out of the spotlight recently. However behind the scenes discussions are going on to find Juncker’s replacement as the group’s head. It is now certain his reign will come to an end when his term expires in January.
And so begins the debate as to exactly who will replace him. German Finance Minister Wolfgang Schäuble has already been mentioned as a possible successor. Schäuble however, rejected the claims as simply rumours.
edited 4th July 2012
What the hell is going on with our economy in Europe since whatever that is, it underpins our level of activity; our level of social engagement our socio political locus does it not?
One cannot avoid, when living in BXL now and again picking up a history book about Schuman or Delors and the various grand plans which developed to drag "the EU" from the Coal and Steel union huddles in Irish bars, cigar smoke and beef prices; to this monster of power which we have today.
I have been extremely critical of the performance of the EU in the financial crisis here on this website. The crisis facing special units of the EU megalith made some howling mistakes in crisis management.
It has become obvious recently that senior EU personnel really do not understand how banking and financial markets function. (reference) The disaster that was the EBA (& its predecessor CEBS) speaks to that clearly!
The crunch time is here again. Zarky and Merkel agreed the terms of the Greek Bailout 2.0 last night. During the course of the day we will find out more of the details as the other eurozone countries have to be presented with the results of the negotiation where France had to convince Merkel of what in practice may be political suicide. It's about legacy of Merkel, not re-election.
As usual the plans were circulated by the European Commission yesterday evening, where all owners of Greek bonds that come due in the next eight years will be urged to swap their holdings for new bonds that do not mature for another 30 years. The silly bank tax, a 0.0025 per cent levy on all assets held by eurozone banks, was scrapped as Merkel won the skirmish against Sarkozy.
The European Commission yesterday (29 June) presented long-awaited proposals for the EU's next seven-year budget (2014-2020). In a bid to reduce national contributions, the Commission suggested levying new taxes directly, a proposal that was strongly rejected by the UK, which labelled it "unrealistic".
José Manuel Barroso, president of the European Commission, proposed to increase the EU budget from the current €976 billion to €1.025 billion for the next seven-year period, which starts in 2014.