Tag: economic crisis

The global "Day of Rage" against the world's financial system won some limited sympathy from political and economic leaders yesterday (16 October), after protests that were peaceful everywhere except Italy.

Spain has become the first EU country to follow the advice of Germany and France and start a parliamentary procedure to enshrine in its constitution a 'golden rule' guaranteeing budgetary stability. EurActiv Spain reports.

Italy’s political crisis scaled new heights yesterday (3 August) as European institutions voiced confidence in the under-fire markets of the country, whose fragility is threatening the entire euro zone.

Suicides rates rose sharply in Europe in 2007 to 2009 as the financial crisis drove unemployment up and squeezed incomes, with the worst hit countries like Greece and Ireland seeing the most dramatic increases, researchers said today (8 July).

Portugal's main opposition Social Democrats (PSD) again refused today (21 March) to back new government austerity measures, raising the risk that the minority administration of Prime Minister José Sócrates could fall after a vote just before a key EU summit to be held at the end of the week.

MEPs have called on member states not to divert money and resources away from health care, concerned that austerity measures will widen health gaps in the EU.

An "enormous" amount of preparatory work has been carried out by Council President Herman Van Rompuy ahead of a two-day EU summit starting today (16 December), meaning EU leaders will have a "short and focused" meeting, diplomats told EurActiv.

Although EU governments do bear responsibility for their current debt problems, this is only half the story as the financial crisis was triggered by unsustainable increases in private debt, writes Paul de Grauwe, professor of economics at the Katholieke Universiteit Leuven in Belgium.

Central and Eastern Europe may have returned to economic growth but this does not include Romania, which needs to face reality and change its policies if it is to emerge from the crisis, writes Romanian MEP Corina Cretu (Socialists & Democrats), a member of the European Parliament's special committee on the financial, economic and social crisis.

Social measures such as fair pay for workers and financial support for the unemployed are helping to protect jobs and underpin economic recovery worldwide, experts claimed at an international conference in Brussels yesterday (11 October).

Leaving greater scope to financial markets is the best way to achieve the original aims of the euro, writes Niels Thygesen, professor of economics (emeritus) at the University of Copenhagen and a former independent member of the Delors Committee on Economic and Monetary Union in 1988-1989.

As the European Union slowly begins to emerge from the economic crisis, member-state governments now face the tough task of reviving their job markets and getting people back into work in the coming years, against a backdrop of an EU employment target of 75% for the year 2020. EurActiv's media network reports.

EU countries have to consolidate their budgets, but must opt for smart cuts that do not inhibit future growth, argued European Commission President José Manuel Barroso in Poland ahead of a summit of EU leaders next week. EurActiv.pl reports.

The financial crisis is over but the world is currently divided into two groups: those countries that are recovering strongly and those that are lagging behind with new potential problems, writes Hans-Werner Sinn, professor of economics and public finance at the University of Munich and president of the Ifo Institute, in an August op-ed.

Hungarian banks warned that a bank tax put forward by the country's government would only harm the sector, which has proven to be viable even in the worst periods of the economic crisis. EurActiv Hungary reports.

World leaders agreed on 27 June in Toronto to take different paths towards assuring lasting growth and making their banking systems safer, a reflection of the uneven and fragile economic recovery in many countries.

At their summit on 17 June, EU leaders will recommend opening accession negotiations with Iceland, read draft Council conclusions obtained by EurActiv.

German Chancellor Angela Merkel's coalition agreed a package of budget cuts and taxes yesterday (7 June) to bring the structural deficit of Europe's biggest economy within EU limits by 2013 and revive her political fortunes.

European Commission President José Manuel Barroso's recent criticism of Germany's calls for budgetary discipline to be tightened in the EU even if treaty change is required was "tactless", Slovak Finance Minister Ján Počiatek told EurActiv Slovakia in an exclusive interview.

German Chancellor Angela Merkel played the populist card over the Greek crisis and even rode on anti-Greek prejudices shared by many Germans. Several mainstream politicians described the contagious effect across Europe as "alarming". EurActiv's network reports.

Eurozone member Slovakia will vote on financial aid for debt-laden Greece only after its June election, the country's prime minister said on 3 May, insisting that Athens must do its homework on spending cuts before receiving any Slovak cash.

Eurozone leaders are discussing the possibility of holding a special summit in Brussels on 10 May to activate an aid package for Greece, a spokesman for the Spanish government said on 27 April.

Competition policy is essential for sustainable growth and a pillar of economic recovery, while those who want to relax competition during the economic downturn or protect national markets and support inefficient national businesses are "wrong", said Joaquín Almunia, European Commissioner for Competition, at a European Policy Centre (EPC) briefing on 19 April. Extraordinary public support measures were introduced to help the EU through the crisis, but these are now gradually being reduced and markets will start to function normally again, writes the EPC in its report of the event.

Romanian Central Bank governor Mugur Isarescu suggested his country would delay its 2015 target for adopting the euro, saying "more preparation" was needed, the Romanian press wrote yesterday (15 April).