The euro zone has weapons to tackle the current debt situation, but will need to activate the EFSF with more conviction and larger scale for it to be effective, Sir John Gieve, former deputy governor of the Bank of England, told CNBC.
Contagion at the core. A poor auction of German bunds — some are calling it an outright failure, since the bid to cover ratio was below 1 if the Bundesbank bids are excluded — seems to have shocked traders in Europe. The average yield was 1.98 percent.
The euro zone will end up issuing joint Euro Bonds, which would help support weaker members, Irish Finance Minister Michael Noonan told CNBC Wednesday.
Brussels will on Wednesday propose measures giving it more authority over the national budgets of euro zone states, including a requirement to submit tax and spending plans to European Union authorities before their national parliaments. The FT reports.
European leaders are reportedly preparing a plan to “strengthen” the European Union in advance of a Dec. 9 meeting in Brussels. One of the plans they are considering is “centralized” fiscal oversight.
Following the daily swings of the euro zone debt crisis, it can be difficult to focus on the long-term, bigger picture.
It is perfectly obvious that the euro zone cannot run as it is without fiscal union and a surrender of sovereignty, Lord Digby Jones, former director general at the Confederation of British Industry told CNBC Monday.
The message from Germany is clear: there will be no bailout of the euro zone via monetizing debt through bond purchases by the European Central Bank. This stance, according to Chris Tinker, an equity strategist at Libra Investment Services in London, means higher borrowing costs acting as a mechanism for pushing through structural reforms.
Ireland is viewed by many on the outside as the best performer from the struggling euro zone peripheral economies, but there are plenty of voices within the country who doubt this can continue.
If a week is a long time in politics, two weeks covering affairs of state in Italy can seem like an eternity. Maybe that's why Rome got its moniker, but having covered the fall of Berlusconi and the rise of Monti's technocrats, there's some relief things moved along quicker than I and investors feared.
How much of a threat is what's happening in the Eurozone to the US market, with James Moffett, Scout Investments, and Kathy Jones, Charles Schwab.
The European Central Bank (ECB) should not be used as a lender of last resort to national governments, John Lipsky, the International Monetary Fund’s (IMF) First Deputy Managing Director, said on Friday.
The austerity measures being rolled out in countries across Europe will have a devastating effect on the living standards of its population, an economist told CNBC Friday.
Groucho Marx once said that money frees you from doing things you dislike. “Since I dislike doing nearly everything, money is handy,” said the Marx Brother.
France's Sarkozy wants the European Central Bank to get a banking license, the back door way to turn on the spending spigot; Germany's Merkel is opposed.
Stock markets have taken such a beating over the past few months that they are now more resilient to any upheavals, apart from a complete breakdown of the euro zone, an analyst told CNBC Thursday.
October Consumer Price Index fell 0.1 percent, a little lighter than expected, core CPI up 0.1 percent, in-line with expectations. Headline inflation now up 3.5 percent year over year (2.1 percent ex-food and energy), but the big worry: crude over $100. Headline CPI will not be so tame if that continues.
If the European Central Bank commits to a program to buy bonds from 'danger' states then the euro zone should stay intact, Patrick Armstrong, managing partner at Armstrong Investment Management, told CNBC Wednesday.
Confronted with turbulence in the provinces, the eurozone has sent in new governors. In place of the wayward George Papandreou, Greece now has Lucas Papademos, former vice-president of the European Central Bank. Instead of the unruly Silvio Berlusconi, Italy has Mario Monti, former head of competition policy at the European Commission, according to the FT.
Europe would find it hard to convince emerging markets such as Brazil or China to invest in a European bailout fund, a former European Commissioner warned on Tuesday.