Staff economists blamed pressure
from eurozone countries protecting their own «banks [that] held too much Greek government debt.
Not exact matches
Surely, an exit
from the
eurozone and a subsequent currency devaluation would be traumatic for both
countries, likely leading to a deep recession.
The
eurozone's central bankers, as well as some of the less charitable politicians in the region's lending
countries, say Spain must first request that money
from the central bailout funds and agree to stringent conditions in return for support.
The yield on Greece's three - year bond, which has surged
from 4 % to 13.5 % since October, is now reflecting serious expectations that the
country may end up outside of the
Eurozone and unable to repay its euro - denominated debts.
Since then, French ministers and EU officials since have repeatedly suggested that clearing of euro - denominated trades should move
from London to a
eurozone member
country post-Brexit.
Despite the backlash, the SNB will face
from those who are nursing potential losses that could run into billions, many analysts thought the decision was inevitable in light of next week's expected announcement by the ECB to break new ground in its efforts to inject life into the ailing 19 -
country eurozone economy.
The extent of the fallout is anybody's guess, but Greece could see the value of its bonds plummet, putting its banks in crisis, and ultimately the
country could be ejected
from the
Eurozone.
Bond yields in some
eurozone countries hit new lows, including
countries that might benefit most
from the central bank's program.
Programs of quantitative easing by the Federal Reserve in the United States and by the Bank of England in Britain have helped the economies of those two
countries recover
from the global financial crisis more successfully than the
eurozone has been able to.
Those negative forces include a drop in demand for
eurozone exports
from emerging
countries like China, unstable financial markets, and a decline in confidence among consumers and business managers.
The draft legislation is the latest in a series of income cuts, tax hikes and reforms imposed on austerity - weary Greeks since 2010, when the debt crisis exploded that brought Greece to the brink of bankruptcy and expulsion
from the
eurozone — the club of European Union
countries that use the euro currency.
Greece's new debt deal would give the
country an extra $ 179 billion (euro130 billion) in rescue loans
from the rest of the
eurozone and the International Monetary Fund - on top of the $ 152 billion it was granted a year ago.
Official figures
from Eurostat show that the fall in the
eurozone unemployment rate has been painfully slow — declining to 11.1 % in April
from 11.7 % a year earlier — and remains much higher in
countries like Greece and Spain.
The SPDR EURO STOXX Small Cap ETF tracks an index of stocks
from smaller European firms in
eurozone countries, selected and weighted by market cap.
BWZ is heavily weighted toward debt
from Japan with another large fraction of the portfolio distributed among the
Eurozone countries.
In previous German governing coalitions, the
country's finance minister has traditionally been provided by the second - largest party in the coalition — in the current negotiations, the FDP — so there was also speculation that prevailing German political opinion was likely to become more resistant to any future proposals
from fellow EU members to reform the region's financial markets through a mutual underwriting of
eurozone debt.
The index covers 50 stocks
from 12
Eurozone countries: Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain.
LONDON (AP)-- The 19 -
country eurozone lost some economic momentum in August, largely because of a slowdown in Germany, a closely watched survey showed Monday, days ahead of another possible stimulus package
from the European Central Bank.
The bond purchases were started March 2015 to help the
eurozone bounce back
from troubles over government and bank debt in several member
countries including Greece, Ireland, Portugal, Cyprus, Spain and Italy.
Underlining the health of the German economy compared with much of the rest of the
eurozone, an independent bi-annual report produced by a range of economic institutions for the German Economics Ministry raised its forecast for the
country's growth in 2016
from 1.6 % to 1.9 %, citing the strength of the labor market and private consumption.
It follows that, differently
from what happened in the US — where the various states have imbalances comparable to that of the
countries using the euro — the financial market lost confidence in the sustainability of the
Eurozone but not in the sustainability of the «dollar - zone».
«The ECJ can not cancel budgetary agreements - however, we hope every constitution
from all the 17
countries of the
eurozone have a golden rule on deficit that targets equilibrium and balance,» Mr Sarkozy said.
And the crisis of confidence in the ability of
Eurozone countries to pay their debts has spread
from the periphery to major economies like Italy and Spain.
And lastly, we should also remember that the ECB is the proud owner of close to $ 250 billion worth of sovereign debt
from troubled
Eurozone countries, mainly Greece, Portugal, Italy and Spain, which it acquired through its Securities Market Program (SMP).
We believe these measures would (i) produce a major shift in the perception of unemployment as a problem of the single market rather than as a strictly national problem, (ii) improve labour markets within the
Eurozone, (iii) improve labour mobility in the currency area, particularly
from «labour deficit
countries» to «labour surplus
countries».
But if instead the
eurozone want more powers and treaty change to prop up the euro, in return for that we should insist on bringing back powers
from this
country so we can once again be an independent
country trading with Europe but governing ourselves.»
«With more than 75 % of construction products exports being absorbed into the European market, recent forecasts
from the OECD indicating a slowdown in key
Eurozone countries, such as Germany and France, potentially threaten prospects of further growth for product manufacturers.
Channel 4 News Political Editor Gary Gibbon writes - We now have a draft statement
from the French and the Germans which is about to be put to the other
Eurozone countries.
It is important to remember that the two
countries come at this issue
from completely different perspectives — for the UK, in addition to practical budgetary considerations, the contribution to the EU budget carries great symbolic resonance, while in Germany it is seen as an unwelcome distraction given the wider problems within the
eurozone.
«Of course
countries have got to make difficult decisions about their own public finances... but it's the open speculation
from some members in the
eurozone about the future of some
countries in the
eurozone which I think is doing real damage across the whole European economy.»
In this context, people ask: if there are 18
countries in the
Eurozone which might wish to integrate further, could this lead to further powers being transferred away
from our
country?
I realise that
countries inside the
Eurozone may not relish advice
from countries outside it - especially
from countries, such as Britain, with debts and difficulties of their own.
He is advising European leaders to: reassess the current plan in Greece - which will reportedly see its debt at 120 per cent of its GDP by 2020 -; recapitalise banks in struggling
eurozone economies; and allow the European Central Bank to buy bonds
from distressed
countries.
The following
countries from Eastern Europe are members of the EU but not of the
Eurozone: Bulgaria, Croatia, Czech Republic, Hungary, Poland, and Romania.
Previously, when asked about his customers, Peter Smith, CEO of Blockchain.info told that most new users came
from countries such as Argentina and «the periphery of the
eurozone» where many people have lost their trust in local financial systems.
For starters, Greece represents only 2.0 percent of the
Eurozone GDP, and while some international investors, such as those
from Canada and Germany, have been especially active in the U.S. commercial real estate markets recently, we haven't seen a lot of Greek money flowing into this
country over the past few years.