Eva's Feed
Mar 8, 2012

ECB expected to hold rates as critics pipe up

FRANKFURT (Reuters) – The European Central Bank is expected to keep interest rates on hold later on Thursday and signal that it has played its part in fighting the euro zone crisis after unleashing a dramatic sweep of measures that has unsettled some at the bank.

ECB President Mario Draghi is likely to put the onus on governments to fight the crisis now after the central bank pumped over 1 trillion euros into the euro zone banking system in the last two months with twin three-year funding operations.

Mar 8, 2012

ECB to hold its fire as critics pipe up

FRANKFURT, March 8 (Reuters) – The European Central
Bank is expected to keep interest rates on hold on Thursday and
signal that it has played its part in fighting the euro zone
crisis after unleashing a dramatic sweep of measures that has
unsettled some at the bank.

ECB President Mario Draghi is likely to put the onus on
governments to fight the crisis now after the central bank
pumped over 1 trillion euros into the euro zone banking system
in the last two months with twin three-year funding operations.

Mar 1, 2012

Disquiet within ECB laid bare after cash injection

FRANKFURT, March 1 (Reuters) – Some European Central
Bank policymakers are alarmed that a dramatic loosening of
lending policy stemming from a 1-trillion-euro wave of cash
unleashed into the financial system will fuel imbalances in the
euro zone and stoke inflationary pressures.

Led by Bundesbank chief Jens Weidmann, who was previously a
top advisor to German Chancellor Angela Merkel, they are pushing
for the central bank to think about an exit strategy after it
fed banks 530 billion euros on Wednesday in the second of two
cheap, ultra-long funding operations.

Feb 29, 2012

Irish vote, German court add euro zone uncertainty

DUBLIN/KARLSRUHE, Germany (Reuters) – A planned referendum in Ireland and a German court ruling cast new uncertainty on Tuesday over efforts to overcome the euro zone’s debt crisis, just when a flood of central bank money appeared to be calming financial markets.

Ireland’s prickly electorate, which has twice voted “No” to European Union treaties before reversing itself, will get another chance to keep Europe on tenterhooks with a referendum on a fiscal compact on budget discipline agreed last month.

Feb 28, 2012

German court raises hurdle to euro zone bailouts

KARLSRUHE, Germany (Reuters) – Chancellor Angela Merkel’s room for maneuver on future euro zone bailouts, in doubt after a revolt by coalition lawmakers, shrank further on Tuesday when Germany’s top court raised a hurdle to swift action in financial rescues.

The German constitutional court ruled that parliament may not delegate most decisions on disbursing bailout funds to a special committee meeting in secret, as Merkel had planned after a previous ruling bolstered lawmakers’ oversight powers.

Feb 28, 2012

German court gives parliament more say in bailouts

KARLSRUHE, Germany, Feb 28 (Reuters) – Germany’s top
court said on Tuesday a parliamentary committee set up to
approve urgent action by the euro zone bailout fund was “in
large part” unconstitutional, in a ruling that may hamper
Berlin’s ability to tackle Europe’s debt crisis.

The Constitutional Court verdict means that either a full
session of the 620-strong Bundestag (lower house of parliament)
or its 41-member budget committee will have to be convened every
time a decision has to be made on the use of the bailout fund.

Feb 28, 2012

German court set to rule on MPs’ rights on euro

KARLSRUHE, Germany (Reuters) – Germany’s top court will decide on Tuesday whether a small parliamentary sub-committee can approve future aid to ailing euro zone countries such as Greece, in a ruling that could hamper Berlin’s ability to act swiftly in the debt crisis.

The Constitutional Court in Karlsruhe will rule at about 0900 GMT on a case brought by two opposition MPs who say that giving the nine-person special committee such influence infringes on the rights of German lawmakers.

Feb 27, 2012

German court to rule on MPs’ rights on euro bailouts

KARLSRUHE, Germany, Feb 28 (Reuters) – Germany’s
Constitutional Court will rule on Tuesday whether a small
sub-committee in parliament is representative enough to take
decisions over whether the country should grant help to heavily
indebted euro zone countries such as Greece in future.

The court in Karlsruhe will rule at about 0800 GMT on a case
brought by two opposition MPs who say that giving a nine-person
special committee such influence infringes on the rights of
German lawmakers.

Feb 27, 2012

ECB wall of cash averts credit crunch

FRANKFURT, Feb 27 (Reuters) – The euro zone avoided a
credit crunch in January but banks showed scant sign of lending
on the funds they snapped up at the European Central Bank’s
first 3-year lending operation to companies which have been
starved of investment funds.

The monthly flow of loans to firms stabilised in January,
declining by just 1 billion euros after falling 35 billion euros
in December – the fastest drop on record – ECB data showed on
Monday.

Feb 24, 2012

ECB Greek bond swap could pile pressure on euro zone: S&P

FRANKFURT (Reuters) – The European Central Bank’s decision to exempt itself from taking losses on its Greek bonds gives its senior status in the bond market and may push up borrowing costs of other debt-strained euro zone countries, Standard & Poor’s said on Friday.

The ECB and the 17 euro zone central banks made cosmetic changes to the 62 billion euros worth of bonds they own this week to avoid being pulled into Greece’s debt reduction deal, which will see private investors lose well over half their money.