Tag: eurozone crisis

As eurozone finance ministers gathered in Brussels yesterday evening (14 May), the official line was that talk of a Greek euro exit was "nonsense and propaganda". But the discussion has certainly gathered pace in recent days as European leaders admit they are preparing contingency plans.

Chancellor Angela Merkel's conservatives suffered a crushing defeat yesterday (13 May) in an election in Germany's most populous state, a result which could embolden the left opposition to step up attacks on her European austerity policies.

The Dutch cabinet became the latest victim of the EU-imposed push for austerity, with liberal Prime Minister Mark Rutte presenting his resignation to Queen Beatrix yesterday (23 April). The case of the Netherlands, a triple A eurozone country which is becoming prey to the markets, is raising doubts about the 'fiscal compact' merits, experts warn.

The eurozone's business slump deepened at a far faster pace than expected in April, suggesting the economy will stay in recession at least until the second half of the year.

As part of an ongoing series, EurActiv France is profiling major candidates in the 2012 French presidential elections. Nicolas Sarkozy, the incumbent, faces an uphill struggle for re-election and has resorted to increasingly vocal threats to ensure he gets the “protective” Europe he wants for France.

Economic experts watching Spain don't know how much money will be needed or precisely when, but some are near certain that Madrid will eventually seek a multibillion euro bailout for its banks, and perhaps even for the state itself.

Tapping the €430-billion Norway pension fund, made up of revenues from the country's gas and oil exports, to boost EU bailout mechanisms is a "non issue" because the fund has a different purpose, Norway's Ambassador to the EU Atle Leikvoll told EurActiv in an exclusive interview.

Increasing the eurozone rescue fund – and determining the extent to which Spain may need its help – will be under discussion today and tomorrow (30-31 March) as European finance ministers meet in Copenhagen.

A top EU economist has warned that consumption is unsustainable in parts of the eurozone and that many countries would not recover economically for "many years" - an assessment backed other experts who call for reforms at European and national levels.

The eurozone is heading towards a “mild recession”, according to updated European Commission forecasts, and will contract by 0.3% in 2012.

Greek leaders failed yesterday (8 February) to agree on a reform and austerity programme, the price of a financial bailout to avoid a messy default, forcing Finance Minister Evangelos Venizelos to go to the country's financial backers with an incomplete deal.

Leading European think tanks have expressed doubt that the EU leaders' pledge to create jobs and growth will be successful, adding to a growing wave of criticism over the outcome of this week's EU summit.

Only one country is opposed to give observer status to Eastern European non-eurozone countries in the new intergovernmental 'fiscal compact' treaty, diplomats told EurActiv. EU leaders meet on Monday (30 January) to agree on the treaty on tighter fiscal rules to preserve the eurozone from new crises.

The latest draft of the fiscal compact - which we reveal here - includes a new clause compelling countries to ratify the pact or face losing lines of bailout cash as a penalty.

Standard & Poor's cut its credit rating of the eurozone's rescue fund, the European Financial Stability Facility (EFSF), on Monday (16 January), claiming its decision was inevitable following cuts three days earlier to the creditworthiness of France and Austria, two of the EFSF's guarantors.

Global leaders and businessmen urged Europe yesterday (16 January) to take fresh steps to resolve its deepening debt crisis, with a top executive of the IMF warning the continent will see a "downward spiral of collapsing confidence" if no further action is taken.

Europe's economic and financial challenges are not the ultimate or even the defining threat to the European project, says Marin Lessenki, author of a new report published by the European Policies Initiative and Open Society Institute in Sofia.

No celebrations are due to take place as the euro marked its 10th anniversary, but leaders seized the occasion to call for reforms needed to strengthen the EU common currency. 

Standard & Poor's has cut Hungary's long-term credit rating by a notch to BB+ to "junk", citing unpredictable policies, adding to pressure on the government to change its unorthodox policy and clinch a deal with international lenders.

The incoming Danish EU presidency made it plain on Friday (16 December) that it would take a back-seat role in negotiations over the intergovernmental treaty decided by EU leaders at their 8-9 December summit.

British Prime Minister David Cameron held telephone talks yesterday (14 December) with potential allies in the European Union as he seeks to avoid isolation after vetoing EU treaty changes to allow closer fiscal union by eurozone members. 

What is needed to tackle the crisis is a real plan, and this is not what has been proposed by EU leaders at their 8-9 December summit, says Sergei Stanishev, leader of the Party of European Socialists (PES).

As heads of state get ready for dinner, our table showing where nine member states stand on the key issues - compiled using information from the EurActiv network - exposes the complexity of the negotiation ahead.

One aspect of the current EU financial crisis has been the proliferation of EU actors within the Brussels circle and the exclusion of national-level actors, something that can endanger the idea of European integration in the future, warns Bernd Hüttemann of European Movement Germany.