Breakingviews

Hugo Dixon: Greek election may reopen can of worms

By Hugo Dixon
August 31, 2015

Given that no party is likely to emerge from next month’s vote with a majority, it may be hard to form a strong government that can implement the country’s new bailout deal. There’s even a risk that there will be yet more elections. That could tip Greece back into crisis.

Hugo Dixon: Greece may not need debt haircut

By Hugo Dixon
August 17, 2015

No single measure, such as debt to GDP, adequately captures how unsustainable Athens’ balance sheet is. Most other yardsticks show Greece needs debt relief. But cutting the face value of its borrowings is probably not required.

Greece deal leaves euro intact but fragile

August 11, 2015

Athens may get its bailout after Prime Minister Alexis Tsipras gave in to reform demands. Quitting the euro is much less likely. It suggests currency union can bear the near-exit of a peripheral state. Economic rifts between core members, though, remain the big future risk.

Oil price slide complicates life for central banks

August 4, 2015

Brent is back down at $50 a barrel. Bond prices show this is eroding investor confidence that inflation will pick up. Central banks usually ignore the temporary impact of commodity price swings, but can’t afford to be complacent with inflation and policy rates already so low.

Hugo Dixon: Euro zone doesn’t need political union

By Hugo Dixon
August 3, 2015

The Greek crisis has triggered renewed calls for a euro zone government, budget and parliament. But such a political union isn’t needed, desirable or achievable. Instead, the euro zone needs more market-based solutions to thrive.

Varoufakis gives Greece the gift of a scapegoat

July 29, 2015

The former finance chief’s alarming tales of trying to hack state computer systems might be just what the debt-stricken country needs. Ask China, which has long recognised the value of a strategic purge. Rogue elements breed discord, but once expelled, they can create more unity.

Hugo Dixon: The optimist’s guide to Greece

By Hugo Dixon
July 27, 2015

There are so many ways things could go wrong in Greece that it’s easy to miss how things could also go right. The good scenario involves the ECB buying up Greek bonds, the lifting of capital controls and a deal on debt relief – all by year-end.

Edward Hadas: Stop knocking the euro

By Edward Hadas
July 22, 2015

Ben Bernanke thinks the single currency is failing. He is not alone. But the former Fed boss is too short term and too financial. The euro zone has tough structural economic problems. The currency is different. Its future is political, and bright.

Hugo Dixon: Mario Draghi is having a good war

July 20, 2015

The ECB president has done almost everything he can to keep Greece in the euro without breaking the central bank’s rules. Although Draghi has been attacked by Athens for asphyxiating the country and hardliners for showing excessive leniency, he has got the balance about right.

Rob Cox: The world’s hardest central bank job

July 16, 2015

It’s not Yellen’s, Draghi’s or Kuroda’s. Russian central bank chief Elvira Nabiullina faces a unique bouquet of challenges. On top of a weak oil price and ruble, nettlesome inflation and Western sanctions, there’s Vladimir Putin. Under the circumstances, she deserves a medal.