Breakingviews

Dixon: How to rehabilitate capitalism

By Hugo Dixon
February 1, 2016

The classic leftist response to capitalism’s unfairness - tax and spend - has failed. A better bet is to fight unfairness caused by corruption, vested interests and tax cheating, while investing in education. India and Italy show some of the right ideas.

Dixon: EU’s latest challenge – rule of law

By Hugo Dixon
January 18, 2016

The Polish and Greek governments may be flouting the rule of law. This doesn’t just undermine democracy: it is bad for investment. Brussels is in a quandary. It doesn’t want to pick quarrels. But if it turns a blind eye, bad behaviour could spread.

New Greek opposition leader may cause instability

By Hugo Dixon
January 11, 2016

The election of Mitsotakis, a liberal reformer, as leader of the centre-right New Democracy party means PM Tsipras now faces a credible opponent. While this is in Greece’s long-term interests, it raises the risk of short-term clashes between Athens and its euro zone creditors.

Dixon: EU could fall apart without flexibility

By Hugo Dixon
December 21, 2015

Brussels’ knee-jerk reaction to crises is to ask for more power. Its latest series of problems has fuelled right-wing populism, which feeds off the idea that the EU already has too much influence. Unless the bloc adopts more decentralised solutions, it could unravel.

Dixon: EU-Turkey deal is historic, if it sticks

By Hugo Dixon
November 30, 2015

The EU has dangled the prospect that Turkey can join the bloc, offered to liberalise visas and promised the government a chunk of cash in return for Ankara agreeing to stem the flow of migrants to Europe. The snag is that not all of the pact looks deliverable.

Greek banks get marginally more investable

November 2, 2015

ECB stress tests revealed a 14 bln euro capital hole. The tests were doubly tough: the pass mark was high, and the state will not prevent shareholder dilution. Yet banks are stuck with bad loans and the economic outlook is unclear. Greek bank equity is still a bet for the brave.

Dixon: Tsipras’ biggest stress tests yet to come

By Hugo Dixon
November 2, 2015

A central bank verdict that the top Greek lenders must raise only 14.4 billion euros is welcome news for the prime minister. But he has to implement more tough measures before he can secure debt relief from his euro zone creditors. Until then, he faces political risks.

Piraeus debt swap makes most sense for Greek bulls

October 16, 2015

The Greek bank is offering senior creditors a debt-for-equity swap. Acceptance means bondholders get a bigger upside if Greece recovers, and it could help banks’ current capital raising. But those worried the state is not out of the woods should hang on to their bonds.

Hugo Dixon: Greek bank recap is race against time

By Hugo Dixon
October 5, 2015

Capital must be injected by year-end to avoid a disastrous bail-in of uninsured depositors. To meet the deadline, Europe’s central bank must finish its stress test and decide how much capital is required. The banks then need time to see if private investors will take part.

Hugo Dixon: It’s all up to Tsipras now

By Hugo Dixon
September 21, 2015

The leftist politician’s electoral triumph means domestic forces can’t impede him in implementing Greece’s 86 billion euro bailout deal. The big question is whether Alexis Tsipras has the will and the competence to do so. If not, his victory could soon turn to disaster.