Tag: financial crisis

Western banks rushed into Central and Eastern Europe, bringing much-needed capital and expertise. But the 2008 financial crisis and the eurozone troubles have shown that the credit boom was unsustainable, if not reckless, argues S. Adam Cardais.

British Prime Minister David Cameron has attacked "ludicrous" European Union budget plans and played down hopes its leaders can reach a spending deal later this month, stepping up the rhetoric before talks in London with German Chancellor Angela Merkel.

Countries in Eastern Europe have until now shown remarkable economic resilience, after being hit harder by the 2008–2009. But their economic future relies on a new model of growth, argues Jana Grittersova.

European healthcare systems are defying budget cuts and the bite of continent-wide austerity programmes to deliver improving performances, according to the sixth Euro Health Consumer Index.

In order to escape the dead-ends of the financial crisis in Europe, stakeholders must overcome their national interests and compromise towards a pan-European synergy, writes Nikos Chrysoloras.

While the financial crisis continues to grab headlines, the need for public engagement in  other areas of European affairs - possibly through the coming European Citizens' Initiative - persists, argue Rick Zedník and Christophe Leclercq, respectively CEO and Publisher of EurActiv.

In a rare interview, Helmut Kohl, the former German chancellor, slams his protégé Angela Merkel for her handling of the euro crisis and for damaging Germany's leadership in international relations. EurActiv Germany has the full transcript.

Commission President José Manuel Barroso voiced support yesterday (3 August) for Italy and Spain – both under attack on financial markets – but acknowledged that as EU leaders have been slow to deliver on promises, investors now doubt whether the euro zone can overcome its sovereign debt woes.

Up to one in six European banks is set to fail an EU-wide financial health check, according to eurozone sources close to the stress testing, as officials scramble to set up backstops for those at risk.

Portugal's caretaker government said yesterday (6 April) it had decided to seek financing from the European Union, in an abrupt turnaround after resisting a bailout for months despite sharply deteriorating financial conditions.

The European Union's executive outlined a proposal yesterday (6 January) that could force those who lend to banks to bear big losses should they fail, opening a new line of attack on bondholders who escaped the crisis unscathed.

There are no discussions about more countries seeking EU financial aid following Ireland's request for help, the European Commission said yesterday (25 November), following reports that Portugal was under pressure to seek aid.

The high price of the financial crisis shows how reforms must be as cost-effective as possible, writes Jean Pisani-Ferry, director of economics think-tank Bruegel, professor of economics at the Université Paris-Dauphine and a member of the French prime minister's Council of Economic Analysis.

The crisis and its regulatory consequences are set to change the landscape of financial centres across the world and the competition among them – with Europe falling behind, writes Steffen Kern, an analyst at Deutsche Bank Research, in an August study.

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.

As EU citizens lose faith in their leaders' resolve to make the financial sector pay for the damage it has caused, the case for implementing a financial transaction tax (FTT) ''could not be stronger,'' argues ex-investment banker Sony Kapoor, managing director of think-tank Re-Define and an advisor to several G20 governments and the European Parliament, in an op-ed for EurActiv.

More women may be needed in decision-making positions to stave off future crises, writes gender awareness expert Dr. Jane Hailé, an independent consultant to the UN and the European Commission, in a post on Blogactiv.

Germany may widen a ban on speculative trades in financial stocks to cover all shares, a draft finance ministry document showed yesterday (25 May).

Although the G20 was hailed as the body that would prevent another great depression, it has practically disappeared from public view and is over-represented by Europe – which will have to streamline its participation at some point, writes Katinka Barysch, deputy director of the Centre for European Reform (CER), in an April paper.

''Speculators are said to have been involved in the escalation of the Greek crisis. For this reason, politicians want to ban the purchase of naked credit default swaps (CDSs). This would not be of any help to sovereign borrowers, however,'' writes Christian Weistroffer from Deutsche Bank Research in a March publication.

Just ahead of an EU summit starting tomorrow (25 March), Germany signalled for the first time that it may accept European financial aid for Greece as a last resort, but only if the IMF is involved and eurozone partners accept tougher budget discipline rules.

Lawmakers in the European Parliament's regional affairs committee voted yesterday (18 March) to simplify access to the EU's billions of regional funding, saying faster access is vital for tackling Europe's economic crisis. The new rules could be in place by the summer.

There is no case for emergency action to crack down on naked selling of credit default swaps, as called for by France and Germany, British authorities said on 10 March. At the same time, the US warned that EU plans to regulate hedge funds could cause a transatlantic rift.

The issue of whether Iceland should reimburse the UK and the Netherlands €3.9bn lost by British and Dutch savers in the Icesave crash is a bilateral one and should not affect the country's EU accession prospects, Enlargement Commissioner Štefan Füle told the European Parliament yesterday (8 March).