A symbol of inflation or identification?
15 EU states already have the euro. Four others have applied to introduce it but do not yet fulfil the strict criteria set by the European Central Bank (ECB). European politicians disagree about the policy pursued by the ECB. How does the euro affect European relations?
euro|topics dossiers
Main focus of Wednesday, 2. January 2008
Cyprus and Malta, members of the EU since 2004, adopted the European currency on January 1st 2008. The Eurozone now has fifteen members. The European ... » more
Cyprus and Malta, members of the EU since 2004, adopted the European currency on January 1st 2008. The Eurozone now has fifteen members. The European press is delighted with this enlargement.
More from the press review on the subject » Economic Policy, » Financial Markets, » Malta, » Cyprus, » Europe
All available articles from » Henri-Pierre Jeudy
Main focus of Thursday, 18. October 2007
Just before the opening of the EU summit in Lisbon, a few controversial issues still remain to be resolved. One is Bulgaria's insistence that the ... » more
Just before the opening of the EU summit in Lisbon, a few controversial issues still remain to be resolved. One is Bulgaria's insistence that the word 'euro' be spelt "Ebpo" in Cyrillic script. What is the connection between national identity and the single European currency?
More from the press review on the subject » Fiscal Policy, » Economic Policy, » Tax Policy, » Europe, » Bulgaria
All available articles from » Martin Woker
Main focus of Tuesday, 9. October 2007
The finance ministers of Euro Zone countries met in Luxembourg on Monday, October 8th to examine the issue of the constantly rising euro. They will ... » more
The finance ministers of Euro Zone countries met in Luxembourg on Monday, October 8th to examine the issue of the constantly rising euro. They will adopt a common stance at the G7 summit, which will take place in Washington DC from October 19th to 21st. Three Euro Zone nations will be in attendance. But can the Euro Zone exert any real influence on international markets?
More from the press review on the subject » Economic Policy, » Europe
All available articles from » Riccardo Barenghi, » Michele Santoro
Main focus of Friday, 13. July 2007
The euro reached a record high exchange against the dollar on Thursday, July 12th, at $1.3798, after having already set a record last Tuesday. The ... » more
The euro reached a record high exchange against the dollar on Thursday, July 12th, at $1.3798, after having already set a record last Tuesday. The European press sees no danger in this rapid appreciation and continues to endorse the independence of the European Central Bank (ECB) to set the course of interest rates.
More from the press review on the subject » EU Policy, » Europe
All available articles from » Thomas Ferenczi
Main focus of Friday, 10. August 2007
The crisis of confidence affecting American mortgages has spread to the Old Continent. The French bank BNP Paribas triggered doubts when it suspended withdrawals from three investment ... » more
The crisis of confidence affecting American mortgages has spread to the Old Continent. The French bank BNP Paribas triggered doubts when it suspended withdrawals from three investment funds in the United States on Thursday, August 9th. The European Central Bank (ECB) has made an emergency intervention, injecting almost 95 billion euros into the financial system. Will this be enough to stop the panic?
More from the press review on the subject » EU Policy, » Consumers, » Europe, » North America, » U.S.
Denmark
Jyllands-Posten - Denmark | Wednesday, 16. January 2008
Within the EU, Denmark has a special status and can respond more independently than the other member states when it comes to defence policy, legal and financial issues. Prime Minister Anders Fogh Rasmussen wants to do away with these special rules, and hold a referendum both on this and on possible adoption of the euro. The paper welcomes the news: » more
Within the EU, Denmark has a special status and can respond more independently than the other member states when it comes to defence policy, legal and financial issues. Prime Minister Anders Fogh Rasmussen wants to do away with these special rules, and hold a referendum both on this and on possible adoption of the euro. The paper welcomes the news: "It's only logical to get rid of these clauses – the sooner the better. Without such a transformation, Denmark remains excluded from future important decisions within the EU. … Entry into the euro zone would bring concrete benefits. Both citizens and industry would save time and money. But the topic remains emotionally loaded. It could be the toughest nut to crack."
» full article (external link, Danish)
More from the press review on the subject » EU Policy, » Denmark
Germany
Süddeutsche Zeitung - Germany | Friday, 29. December 2006
On January 1st 2007 it will be five years since the euro was first introduced. German journalist Thomas Steinfeld sees the unpopularity of the European currency as the secret of its success: » more
On January 1st 2007 it will be five years since the euro was first introduced. German journalist Thomas Steinfeld sees the unpopularity of the European currency as the secret of its success: "The European currency lacks character in the same way the European bureaucracy does. Its advantage lies in its indifference to political divergences. The euro does not conjure up associations with the dark figures of Italy's shadow economy, the regional obstinacy of French winegrowers or the international success of German engineering. All the European coins are the same on the side with the number on it. They are neutral to political differences. The euro is impervious to such things. This is the great advantage of the new currency for the sake of which we sacrificed the historical, social and sentimental symbolism of the franc, the German mark, the guilder, the schilling and the lira. The neutrality of the euro is therefore of the same nature as that of European legal norm: it has to be devoid of sentimental value and anti-intellectual, otherwise it wouldn't work."
» full article (external link, German)
More from the press review on the subject » Fiscal Policy, » Trade, » Consumers, » Tax Policy, » Europe
All available articles from » Thomas Steinfeld
Estonia
Postimees - Estonia | Friday, 26. January 2007
On 1 January 2007 the Slovenians converted to the euro, while Estonia, which had originally planned to convert to the euro on the same date, ... » more
On 1 January 2007 the Slovenians converted to the euro, while Estonia, which had originally planned to convert to the euro on the same date, was unable to meet the criteria. The Estonian newspaper takes a look at what Slovenia did differently. "Slovenia is more integrated into the global economy than Estonia. Therefore, our problem with converting to the euro is that we have fewer options for pushing the economy in the direction we want it to go. Moreover, the Slovenians did more groundwork, and in this respect Estonia was less efficient. For us, the euro was never a matter of life or death. The political elite didn't make a coordinated effort. However, the delay hasn't had a negative impact on the economy yet. On the contrary, our annual economic growth has gone up to over 11 percent."
» full article (external link, Estonian)
More from the press review on the subject » Fiscal Policy, » Trade, » Consumers, » Tax Policy, » Slovenia, » Estonia
Finland
Hufvudstadsbladet - Finland | Monday, 4. June 2007
Twelve of the 15 "old" EU member states have adopted the euro. Björn Mansson points out that the enlargement of the EU to encompass 27 ... » more
Twelve of the 15 "old" EU member states have adopted the euro. Björn Mansson points out that the enlargement of the EU to encompass 27 countries means that euro countries are in the minority at present, despite Slovenia's joining the Eurozone. However he adds that this is soon to change. "It's highly likely that the decision will be made to let Malta and Cyprus become members of the Eurozone as of 2008. This means that the euro will once again be the main currency in the majority of EU countries - in 15 of 27. Of course, like Slovenia, Malta and Cyprus are only small economies with little influence within the Eurozone. Nonetheless, the fact that the majority of EU members will have the euro has a certain symbolic value. Do the British, the Danes and the Swedes really intend to wait until even the last former socialist state has converted to the euro?"
» full article (external link, Swedish)
More from the press review on the subject » EU Policy, » Fiscal Policy, » Tax Policy, » Malta, » Cyprus, » Europe
All available articles from » Björn Mansson
Britain
Financial Times - United Kingdom | Thursday, 4. May 2006
Europe should relax its inflation criteria for euro-zone hopefuls Estonia, Lithuania, Slovenia, Latvia and Slovakia, urge Willem Buiter and Anne Sibert, of the London School ... » more
Europe should relax its inflation criteria for euro-zone hopefuls Estonia, Lithuania, Slovenia, Latvia and Slovakia, urge Willem Buiter and Anne Sibert, of the London School of Economics (LSE) and the University of London, respectively. "All candidate countries easily meet most of the Maastricht criteria for eurozone membership. They satisfy the exchange rate and interest rate criteria and only Slovakia narrowly misses one of the two fiscal criteria. This is in contrast to Belgium, Germany, France, Italy and Greece, which, if they were not already eurozone members, would not be able to join today, as they do not meet the fiscal criteria. ... The Maastricht criteria have been violated in spirit and letter so frequently and opportunistically that little further damage would be done by an interpretation that differs from the one favoured by the ECB and the Commission but respects the spirit and letter of the treaty."
» more information (external link, English)
More from the press review on the subject » EU enlargement, » Fiscal Policy, » Europe
All available articles from » Willem Buiter, » Anne Sibert
Financial Times - United Kingdom | Monday, 29. January 2007
Norman Blackwell, chairman of the think tank Centre for Policy Studies (CPS), considers Britain's relationship with the EU. "As one of the world's largest trading ... » more
Norman Blackwell, chairman of the think tank Centre for Policy Studies (CPS), considers Britain's relationship with the EU. "As one of the world's largest trading nations with particular strengths in international services, Britain's future prosperity lies in competing as a global free trader. In this context a project aimed at tying us more closely into a slow-growth European economic block seems not just outdated, but increasingly at risk of holding us back. ... We have already opted out of the eurozone to no ill effect. In a more flexible Europe there is no reason we cannot similarly opt out of other aspects of continued political and economic integration that constrain our interests. ... Britain should not turn its back on Europe, but we urgently need to define a different, looser relationship within Europe that more adequately serves our future global interests.
» more information (external link, English)
More from the press review on the subject » EU Policy, » Fiscal Policy, » Trade, » Tax Policy, » United Kingdom
All available articles from » Norman Blackwell
Lithuania
Omni.lt - Lithuania | Monday, 12. June 2006
Owing to an inflation rate that is approximately 0.1 percent higher than that stipulated by the Maastrich criteria, Lithuania is not to be permitted to introduce the euro as planned on January 1, 2007. Jonas Cicinskas comments bitterly: » more
Owing to an inflation rate that is approximately 0.1 percent higher than that stipulated by the Maastrich criteria, Lithuania is not to be permitted to introduce the euro as planned on January 1, 2007. Jonas Cicinskas comments bitterly: "All previous experience with the EU shows that conformity with certain criteria is mainly a question of political interpretation to serve the purposes of EU leaders. This was the case with the creation of the Economic and Monetary Union, the Stability Pact and the Convergence criteria... Although candidate countries were required to fulfill the Copenhagen criteria for the last round of EU enlargement, there was one tacit condition which everyone knew about: no one was to join the EU before Poland did, because this was Germany's strategic interest... Lithuania's joining the Eurozone would not have posed a threat to anyone."
» full article (external link, Lithunian)
More from the press review on the subject » EU enlargement, » EU Policy, » Lithuania, » Europe
All available articles from » Jonas Cicinskas
Malta
Malta Today - Malta | Sunday, 6. January 2008
Malta's conversion to the euro started on January 1st 2008. The weekly hopes that "the use of the euro will also start the process of ... » more
Malta's conversion to the euro started on January 1st 2008. The weekly hopes that "the use of the euro will also start the process of integrating a European mentality in Malta too. This involves the inculcating of European values which have survived the course of history ever since the French Revolution 300 years ago. We need to think less as islanders, adopt a greater sense of community, aspire to further integrate the full gamut of human rights which the European Union champions, and strike a fair balance between market liberalism and social welfare. Most especially, we need to cultivate the value of tolerance towards each other by accepting different opinions ... by accepting newcomers to our labour market in the spirit of free movement; by welcoming foreigners who are actively seeking our help. ... Tolerance is a value which has truly rendered European a colourful political reality."
» full article (external link, English)
More from the press review on the subject » EU Policy, » Domestic Policy, » Malta, » Europe
Austria
Der Standard - Austria | Thursday, 27. September 2007
Michael Moravec reports on the dispute over the new euro coins that are to come out next year: » more
Michael Moravec reports on the dispute over the new euro coins that are to come out next year: "While the current coins feature only the 15 EU states that were members when the euro was introduced..., the new coins show 'the Continent of Europe' as a whole - i.e. including Switzerland, Norway, Ukraine and Belarus. And in accordance with the wishes of the European Commission, Turkey was also included, if only for the sake of correctly depicting the geographical position of EU member Cyprus. However, government representatives on the European Council changed the Commission's design: Turkey was erased and Cyprus was positioned several hundred kilometres to the West, near Crete, so that it fit in with Europe. Incensed MEPs who got wind of the change feared it was the result of a conspiracy led by opponents to Turkey's accession. The members of the Council appear bewildered by all the uproar... They point out that while Ukraine and Belarus belong to Europe, most of Turkey does not. 'This has nothing to do with politics; it was a decision based purely on geographic considerations.'"
» full article (external link, German)
More from the press review on the subject » EU Policy, » Fiscal Policy, » Tax Policy, » Europe, » Turkey
All available articles from » Michael Moravec
Die Presse - Austria | Monday, 5. February 2007
In an article written for the Project Syndicate and reprinted by the Austrian daily, economist Melvyn Krauss examines how the introduction of the euro has ... » more
In an article written for the Project Syndicate and reprinted by the Austrian daily, economist Melvyn Krauss examines how the introduction of the euro has altered the balance between European countries. "By 2006, both German exports and GDP were growing faster than in France and Italy. Before the introduction of the euro, the reform gap between Germany and its larger neighbours would have been no problem for Europe. The currencies of the reform laggards would have depreciated against that of Germany, and there might have been a supportive cut in interest rates as well. This is no longer possible. ... The appropriate level of the euro for the Germans is too high for the French and Italians. The right interest rate for the French and Italians is too low for the Germans. For reform laggards like France, Italy, and Portugal, currency union with an increasingly competitive Germany is forcing an unwelcome choice between revving up their own reforms and permanent stagnation."
» full article (external link, German)
More from the press review on the subject » Fiscal Policy, » Trade, » Tax Policy, » Germany, » Europe
All available articles from » Melvyn Krauss
Poland
Gazeta Wyborcza - Poland | Tuesday, 20. November 2007
Witold Gadomski calls for the rapid introduction of the euro in Poland. In his opinion the former governing PiS party postponed the step unnecessarily. "If ... » more
Witold Gadomski calls for the rapid introduction of the euro in Poland. In his opinion the former governing PiS party postponed the step unnecessarily. "If the preparations for the conversion to the euro had begun in 2006 we would have been using the currency that is accepted in most European countries in two months' time. Thanks to the low inflation rate which resulted from the decisions of the monetary council 2001 and 2002, introducing the euro would have been easy. But the PiS government missed its chance. Now its politicians are warning the PO-PSL government not to remedy the mistake. It's true that the economy isn't doing as well as it was two years ago and the cost of introducing the euro would now be higher... But the introduction of the euro is an investment for the future and would pay off in a couple of years."
» full article (external link, Polish)
More from the press review on the subject » EU Policy, » Fiscal Policy, » Poland
All available articles from » Witold Gadomski
Sweden
Main focus of Thursday, 18. October 2007
Just before the opening of the EU summit in Lisbon, a few controversial issues still remain to be resolved. One is Bulgaria's insistence that the ... » more
Just before the opening of the EU summit in Lisbon, a few controversial issues still remain to be resolved. One is Bulgaria's insistence that the word 'euro' be spelt "Ebpo" in Cyrillic script. What is the connection between national identity and the single European currency?
More from the press review on the subject » Fiscal Policy, » Economic Policy, » Tax Policy, » Europe, » Bulgaria
All available articles from » Martin Woker
Sydsvenskan - Sweden | Monday, 26. November 2007
Denmark's re-elected Head of Government Anders Fogh Rasmussen wants to hold another referendum on the introduction of the euro. This has sparked a similar debate ... » more
Denmark's re-elected Head of Government Anders Fogh Rasmussen wants to hold another referendum on the introduction of the euro. This has sparked a similar debate in Sweden, which like Denmark is not yet a member of the euro zone. "In Sweden the conservative government is still divided on this issue. But sooner or later - better sooner than later - Sweden will have to take the same step. It's highly likely that this will be a central issue in the 2010 election campaign. By then Denmark may already be on the way to converting to the euro, although one can't predict the outcome of a Danish referendum. But more important than Denmark's decision is the fact that the euro has managed to demonstrate its strength. The common currency is a central element of the EU project. To be left out of it is not a good alternative in the long term."
» to the homepage (external link, Sydsvenskan)
More from the press review on the subject » Fiscal Policy, » Denmark, » Sweden
Switzerland
Le Temps - Switzerland | Monday, 26. November 2007
Istvan Zsoldos, an economist from Goldman Sachs investment bank, highlights the rapid growth of the Baltic States - Estonia, Latvia and Lithuania - and considers ... » more
Istvan Zsoldos, an economist from Goldman Sachs investment bank, highlights the rapid growth of the Baltic States - Estonia, Latvia and Lithuania - and considers that current overheating is compromising their accession to the Eurozone. In the short term, these countries are "heading towards a rather confused period and perhaps a recession. Latvia is a small economy, but the bubble and burst phenomenon will have repercussions. ... The ECB and the current members will think that an increased convergence [between these countries] is necessary before converting to the euro. The Baltic States have behaved as if they already belong to it. The ECB and Europeans are concerned about their reputations. It will be said that they accept the accession of countries that are still unstable. At the moment, the accession of the Baltic States into the Eurozone is scheduled for 2010. But this scenario is becoming less and less likely."
» full article (external link, French)
More from the press review on the subject » EU Policy, » Economic Policy, » Financial Markets, » Lithuania, » Latvia, » Estonia
All available articles from » Istvan Zsoldos
Le Temps - Switzerland | Friday, 28. September 2007
Jean Pisani-Ferry, from the Breugel Institute of Economic Analysis in Brussels, considers that "disunity poses a problem" in the euro zone. "It suffices to listen ... » more
Jean Pisani-Ferry, from the Breugel Institute of Economic Analysis in Brussels, considers that "disunity poses a problem" in the euro zone. "It suffices to listen to the declarations being proffered here and there. Common positions exist, but are not always systematically supported by member states. The euro zone is less divided than it seems, but it is still too divided to prevent a great raucous from bursting out. What is needed is to clarify the doctrine and to agree on what belongs to monetary policy, what is the responsibility of the [European Central Bank], what lies with financial diplomacy and what is the responsability of the governments. There has been too much ambiguity. There needs to be more verbal discipline and more collective action. We are entering a difficult zone in which the viability of the monetary European Union may be put to the test."
» full article (external link, French)
More from the press review on the subject » EU Policy, » Trade, » Europe
All available articles from » Jean Pisani-Ferry, » Richard Werly
L'Hebdo - Switzerland | Thursday, 1. February 2007
"Launched five years ago, the euro, having been an object of pride, is now being accused of all evils", notes the chronicler Jacques Pilet for whom the euro is not responsible for inflation, despite claims otherwise. "Those discontented vilify the euro while it is obvious that problems of inflation could have arisen just as easily with a national currency. We can see this in Great Britain: » more
"Launched five years ago, the euro, having been an object of pride, is now being accused of all evils", notes the chronicler Jacques Pilet for whom the euro is not responsible for inflation, despite claims otherwise. "Those discontented vilify the euro while it is obvious that problems of inflation could have arisen just as easily with a national currency. We can see this in Great Britain: London has become one of the most expensive cities in the world. Imagine what the sterling boom would have been without the euro! Without the discipline required by the common currency, the Italian economy would no doubt be even worse off than it is today. So why does this precious instrument have such a bad image for so many people? Because this image has been fabricated by national leaders who are all too happy to discard their own responsibilities in 'Brussels', or 'Frankfurt'."
» full article (external link, French)
More from the press review on the subject » EU Policy, » Fiscal Policy, » Trade, » Consumers, » Tax Policy, » Europe
All available articles from » Jacques Pilet
Slovakia
Týždeň - Slovakia | Wednesday, 9. January 2008
Robert Zitnansky is confident that Slovakia fulfils the criteria for entry into the Eurozone in 2009. But he wonders how left-populist Slovak Prime Minister Robert ... » more
Robert Zitnansky is confident that Slovakia fulfils the criteria for entry into the Eurozone in 2009. But he wonders how left-populist Slovak Prime Minister Robert Fico will manage to convince pensioners and low-income constituents to support a speedy introduction of the currency. "These people do not go to Austria to do their shopping, to Spain on holiday or to Ireland for jobs. They'll only be frustrated by the euro and the likely higher prices that accompany it. The people fear monetary change and inflation more than anything. Voters will judge Fico by prices alone, not by the ups and downs of the market."
» full article (external link, Slovak)
More from the press review on the subject » Fiscal Policy, » Slovakia
All available articles from » Robert Žitňanský
Sme - Slovakia | Monday, 19. March 2007
The Slovak crown rose 8.5 percent against the euro this weekend in a step approved by the Slovak government, the members of the eurozone and ... » more
The Slovak crown rose 8.5 percent against the euro this weekend in a step approved by the Slovak government, the members of the eurozone and the European Central Bank. The exchange-rate mechanism is used as a kind of waiting room prior to the introduction of the euro in an EU country. The crown was fed into this mechanism in November 2005. Slovakia hopes to adopt the euro on January 1, 2009. Lubos Jancik expresses his delight "that the EU is recognising our strength. Theoretically, we can join the eurozone when the crown reaches an exchange rate of 30.13 crowns to the euro. Up to now it's been 32.70 to the euro. ... The stronger the crown is prior to the introduction of the euro, the closer the Slovaks will be to attaining the living standards of the 'mature' states of the EU."
» full article (external link, Slovak)
More from the press review on the subject » EU enlargement, » Fiscal Policy, » Tax Policy, » Slovakia, » Europe
Hungary
Népszabadság - Hungary | Saturday, 23. December 2006
Hungary's MEPs can seldom agree on anything but just before Christmas they agreed on a joint demand: » more
Hungary's MEPs can seldom agree on anything but just before Christmas they agreed on a joint demand: if the euro is introduced in Hungary it should be written with a Hungarian accent and be called the 'euró'. The newspaper's Brussels correspondent László Szőcs comments. "As far as its budget deficit is concerned Hungary is certainly not a model EU country. It hasn't been able to meet a single criterion for the introduction of the euro so far. But when it comes to how the word euro should be written the Hungarians are very determined. Brussels wants Hungary to end the disputes in its internal politics and get its economy back on track. What better way to do this than by putting a long 'o' at the end of the word 'euro' ?... The common currency symbolises a united Europe. The notes and coins make the EU tangible. This is why what is written on these notes is important."
» full article (external link, Hungarian)
More from the press review on the subject » EU Policy, » Domestic Policy, » Fiscal Policy, » Tax Policy, » Hungary
Czech Republic
Hospodářské noviny - Czech Republic | Monday, 21. August 2006
It looks like the Czech Republic won't be able to introduce the euro until after 2010 because it won't be able to meet the stability criteria before then. Tomas Nemecek vents his frustration at the delay: » more
It looks like the Czech Republic won't be able to introduce the euro until after 2010 because it won't be able to meet the stability criteria before then. Tomas Nemecek vents his frustration at the delay: "We're not Hungary, which has so many debts that it won't be able to convert to the euro before 2016, and we're not Poland, where the government is letting itself be led by emotions rather than reason. The Czech Republic, with its wealth and its traditionally stable economy, should be just as ambitious as Slovenia, which will be the first post-communist country to adopt the euro. If the Czech budget has a deficit, it's not because we're going through a recession or a war, or because we're building the highest skyscrapers in the world or we want to fly to Mars. The problem is we want everything at the same time – increased benefits for families, larger pensions, new roads and higher salaries. But you can't have everything at the same time – and that's why we won't have the euro in 2010."
» full article (external link, Czech)
More from the press review on the subject » Fiscal Policy, » Tax Policy, » Czech Republic
All available articles from » Tomáš Němeček
Respekt - Czech Republic | Thursday, 8. November 2007
The euro is strong, but the Czech crown is even stronger. For years now the Czech currency has been hitting record highs. "Yet the Cabinet ... » more
The euro is strong, but the Czech crown is even stronger. For years now the Czech currency has been hitting record highs. "Yet the Cabinet still hesitates to take the logical step of facilitating the access of Czech companies to the international market by converting to the common European currency," Petr Fischer notes. The government led by the Civic Democratic Party (ODS) has yet to fix a target date for its accession to the monetary union. "But why? After all, we're talking about those advantages of a single market that the ODS cherished even at those times when Eurosceptism was most intense. But for conservative EU critics the common currency represents more than just a common market. It's proof that Europe can be more deeply and permanently united than through traditional cooperation between individual nation states. The strongest governing party is struggling to avoid this because to a certain extent it would represent the failure of its own ideology."
» full article (external link, Czech)
More from the press review on the subject » Fiscal Policy, » Czech Republic
All available articles from » Petr Fischer
Hospodářské noviny - Czech Republic | Friday, 29. June 2007
According to a Reuters News Agency report, in an internal letter the European Central Bank (ECB) calls into question the plans for allowing Slovakia to join the monetary union in 2009. The reason is the ECB's doubts that the country's inflation rate, which currently meets all EU criteria, can be kept at its present level on a long-term basis. Jan Machacek is disappointed by the ECB's stance: » more
According to a Reuters News Agency report, in an internal letter the European Central Bank (ECB) calls into question the plans for allowing Slovakia to join the monetary union in 2009. The reason is the ECB's doubts that the country's inflation rate, which currently meets all EU criteria, can be kept at its present level on a long-term basis. Jan Machacek is disappointed by the ECB's stance: "Up to now it seemed the Maastricht Criteria had been applied in strict accordance with the stipulations and that a country wouldn't have problems joining the monetary union once it fulfilled the criteria. But a short time ago the ECB refused to allow Lithuania to join - an unexpected and harsh decision because the Baltic country fell short of the inflation criteria by just 0.01 percent. But now Slovakia is facing a much harsher deal: now it's not enough to just fulfil the criteria; the ECB is also beginning to examine whether a country will be able to do so in the long term... This sends a clear message: the 'Easties' are unwelcome in the elite euro club at present."
» full article (external link, Czech)
More from the press review on the subject » EU Policy, » Slovakia, » Europe
All available articles from » Jan Machacek
Cyprus
Phileleftheros - Cyprus | Tuesday, 4. December 2007
On January 1st, 2008, Cyprus will be joining the eurozone. This is worrying a number of inhabitants. "A large majority of Cypriots are sceptical regarding ... » more
On January 1st, 2008, Cyprus will be joining the eurozone. This is worrying a number of inhabitants. "A large majority of Cypriots are sceptical regarding the benefits of the single currency. They are right. The matter of most concern is a hike in prices, or rather the rounding off rising prices. If Cyprus today finds itself in 17th position for purchasing power among the 40 European countries [in a study carried out by the GfK institute], it will find itself catapulted to last in line as soon as it adopts the euro. ... Cyprus is going to enter a European price zone with Cypriot buying power. ... The budgetary surplus of 1.5 % can indeed continue to be the pride of the government, along with the very weak unemployment rate, but reality is tough on a day to day basis. And Cypriot morale may well sink to a low as a result."
» to the homepage (external link, Phileleftheros)
More from the press review on the subject » Domestic Policy, » Economic Policy, » Cyprus, » Europe
Cyprus Mail - Cyprus | Saturday, 5. January 2008
The paper is happy with the country's transition to the euro. "Inevitably, as people began using the euro this week, stories emerged of outrageous profiteering by unscrupulous individuals, latching on to the opportunity offered as people got used to the new currency. ... The fact is, of course, that these are isolated incidents. Further, the access to a massive European market that our participation offers is likely to allow lower prices by reducing costs for those doing business with Cyprus, until recently a tiny, very closed economy. But if the price panic has been seriously exaggerated, it has created a very welcome new phenomenon : » more
The paper is happy with the country's transition to the euro. "Inevitably, as people began using the euro this week, stories emerged of outrageous profiteering by unscrupulous individuals, latching on to the opportunity offered as people got used to the new currency. ... The fact is, of course, that these are isolated incidents. Further, the access to a massive European market that our participation offers is likely to allow lower prices by reducing costs for those doing business with Cyprus, until recently a tiny, very closed economy. But if the price panic has been seriously exaggerated, it has created a very welcome new phenomenon : the Cypriot is finally becoming a proper consumer. Until now, shoppers were often happy to pay up blindly. Now, the price frenzy is making us cautious, rebellious, encouraging us at last to shop around."
» to the homepage (external link, Cyprus Mail)
More from the press review on the subject » Consumers, » Economic Policy, » Cyprus
The role of the ECB
Der Standard - Austria | Friday, 25. January 2008
Eric Frey takes the side of Jean-Claude-Trichet, director of the European Central Bank, who was criticized by politicians and economists for maintaining the average interest ... » more
Eric Frey takes the side of Jean-Claude-Trichet, director of the European Central Bank, who was criticized by politicians and economists for maintaining the average interest rates of the euro zone, while the US Federal Reserve Bank dropped interest rates this week in reaction to the plunging stock market. "Since last summer, both central banks have done everything they could in the current crisis to soften the effect of the threatening interbank liquidity squeeze. ... When the extent of the downturn became clear, they [the Fed] acted fast. It's still unclear whether the move will trigger a change, because not even central banks can work miracles. And it's certainly not their job to prevent losses on the stock exchange. But Europe is not facing an immediate recession. At worst, slower growth is foreseen. That is why prices are rising faster than they have in ages. The investment plans of companies today depend more on their market appraisal than on the cost of loans. For us, unlike in the USA, there is no reason to lower interest rates."
» full article (external link, German)
More from the press review on the subject » Fiscal Policy, » Global
All available articles from » Eric Frey
ABC - Spain | Thursday, 24. January 2008
The European Central Bank (ECB) declared on January 23rd that a lowering of interest rates is not, for the time being, on schedule in the ... » more
The European Central Bank (ECB) declared on January 23rd that a lowering of interest rates is not, for the time being, on schedule in the eurozone, contrary to the American Federal Reserve that reduced its main interest rate in order to try and calm down the current crisis in the stock exchange. The daily criticises the ECB for being so inflexible. "It is difficult to imagine in the context of a strong euro, of a hike in petrol prices, of fragile household consumption, of a drop in investments, of mushrooming unemployment and of a financial crisis, that inflation represents a threat greater than growth. ... One day we will have to strike the Gordian knot that condemns Europe to live crises even longer and more intense than those in the United States. The ECB would gain moral authority and political weight to demand necessary structural reforms if it were to place monetary policy at the service of recovery."
» full article (external link, Spanish)
More from the press review on the subject » International Relations, » Financial Markets, » Europe, » U.S.
Le Temps - Switzerland | Friday, 7. September 2007
Jean-Claude Péclet reacts to the decision announced by the European Central Bank (BCE) on Thursday, September 6th, to leave its interest rate unchanged at 4%, ... » more
Jean-Claude Péclet reacts to the decision announced by the European Central Bank (BCE) on Thursday, September 6th, to leave its interest rate unchanged at 4%, imitating the attitude of other central banks all over the world. "Central banks no doubt reacted a little fast by injecting liquidity without which things would be worse. The hitch is that it has been poured into a bottomless well. 'Transparency is the key to confidence', says Claude Trichet. 'Banks should do a better job communicating their potential losses', volunteers Deutsche Bank's Josef Ackermann. Nice idea, but a bit late. Should the provision of a transparent view of global risks undertaken not be a key element of all banking and especially central banks? To admit now that more time is needed to understand the mechanics of the crisis shaking global finances is a great avowal of impotence."
» full article (external link, French)
More from the press review on the subject » Trade, » Europe, » Global
All available articles from » Jean-Claude Péclet
El País - Spain | Tuesday, 28. August 2007
Responding to the recent stock market crisis, the president of the European Central Bank Jean-Claude Trichet brought up the possibility of not raising the prime ... » more
Responding to the recent stock market crisis, the president of the European Central Bank Jean-Claude Trichet brought up the possibility of not raising the prime rates in September, contrary to what had been expected. "The president of the ECB did well to present himself as prudent on the subject of the future orientation of the Eurozone's monetary policy. Especially because it's the best method of correcting poor communication, a condition with which the institution has been suffering for some time. ... It is reassuring that Trichet didn't succumb to the temptation to impose obstinance as the institution's principal argument, which would only diminish its credibility in the eyes of the market and the taxpayer, not so much in its capacity to intimidate, but rather in its contribution to the well being of the economies that find themselves in its jurisdiction."
» full article (external link, French)
More from the press review on the subject » Europe, » Global
© Bundeszentrale für politische Bildung
Further articles on the subject » EU Policy, » Fiscal Policy, » Europe
More from the press review on the subject » EU Policy, » Fiscal Policy, » Europe
Deutsch
English
Français
© 2005-2012