Breakingviews

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.

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.

Deutsche Bank smart on growth, shabby on costs

July 30, 2015

Germany’s biggest bank grew capital buffers and revenue briskly in the second quarter. But expenses devoured 85 pct of the top line – the same as a year ago. New co-CEO John Cryan needs to pull Deutsche out of some of the 60-plus countries it aims to be in, and cut headcount.

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.

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.

Bafin barbs show scale of Deutsche overhaul task

July 17, 2015

A leaked letter from the German bank’s lead regulator slams executives for incompetence - or worse - over Libor. New CEO John Cryan needs to repair relations. Improving controls and recruiting new managers complicate the already-sizeable job of boosting Deutsche’s performance.

Schaeuble looks immune to Varoufakis-style exit

July 16, 2015

Like his former Greek colleague, Germany’s finance minister has become a liability. After openly calling for Grexit and then questioning an agreed deal, he is not the man to lead future negotiations. The catch is German political realities mean Angela Merkel needs him.

Hugo Dixon: Greek deal leaves bitter aftertaste

By Hugo Dixon
July 13, 2015

Berlin was right to point out that Athens had lost Europe’s trust. But by pushing the Greeks so hard, Germany is also losing Europe’s trust. The summit’s eventual outcome is reasonably fair if tough. But both leaders, Merkel and Tsipras, need to work hard to rebuild trust.

Hugo Dixon: Syriza split best outcome for Greece

By Hugo Dixon
July 11, 2015

PM Alexis Tsipras secured overwhelming parliamentary backing for his U-turn on austerity and reform, but his party has splintered. A new government, which is more serious about implementing whatever bailout programme is negotiated with creditors, will now probably be formed.

Tsipras U-turn only lowers short-term Grexit risks

July 10, 2015

Greece’s latest bailout plan accepts most of what its July 5 referendum rejected. Creditors will have to actively want a Greek exit from the single currency for it to happen now. Yet fresh austerity, capital controls and Athens’ weak reform record mean the truce may not last.