Eva's Feed
Dec 8, 2011

ECB cuts rates as France, Germany press for EU deal

FRANKFURT/MARSEILLE, France (Reuters) – The European Central Bank acted to soften a looming recession and avert a credit crunch in the debt-plagued euro zone by cutting interest rates on Thursday as European Union leaders prepared for a crucial summit.

The ECB cut its main rate by a quarter-point to a record low 1.0 percent as anxiety over the worsening sovereign debt crisis drowned out concern about above-target inflation.

Dec 6, 2011

ECB ready to push boundaries of crisis role

FRANKFURT (Reuters) – The European Central Bank is likely to cut interest rates on Thursday and offer ultra-long liquidity operations to support banks, while leaving the door open to further measures to fight Europe’s debt crisis if governments agree fiscal reforms.

A Reuters survey of 73 analysts showed a 60-percent chance the ECB will cut rates by 25 basis points to a record low of 1.0 percent — a floor it previously reached during the financial crisis in 2009. It cut rates by a similar amount in November.

Nov 23, 2011

France, Germany to press euro zone treaty change

PARIS/BERLIN (Reuters) – French President Nicholas Sarkozy has embraced a German campaign for treaty change that could give European authorities intrusive powers to intervene in the national budgets of countries sharing the euro currency.

France and Germany will soon propose amendments to the European Union treaty in response to the bloc’s sovereign debt crisis, Sarkozy said on Tuesday.

Nov 22, 2011

Spanish yields spike as crisis exits blocked

MADRID/BERLIN, Nov 22 (Reuters) – Spain’s short-term
borrowing costs hit a 14-year high on Tuesday as political
uncertainty over a solution to the euro zone’s sovereign debt
crisis hit another vulnerable southern European economy.

European Union paymaster Germany continues to block the two
most widely-touted exit routes from a deepening crisis that is
shaking the world economy — massive European Central Bank
intervention to buy government bonds, or joint issuance of euro
zone debt.

Nov 22, 2011

ECB’s Weidmann says don’t overstretch the cenbank

BERLIN, Nov 22 (Reuters) – Italy and Spain can resolve
their debt problems without outside help, European Central Bank
policymaker Jens Weidmann said on Tuesday, rejecting growing
pressure for the ECB to act as a lender of last resort to
crisis-hit euro zone countries.

As the debt crisis spreads to core euro zone countries,
pressure from markets and some governments in the bloc is
growing on the ECB to do more to help. Many see the bank as the
only institution with the firepower to contain the crisis.

Nov 18, 2011

ECB bank chief Draghi urges action on rescue fund

FRANKFURT (Reuters) – European Central Bank chief Mario Draghi told euro zone governments Friday to act fast to get their rescue fund up and running, expressing exasperation at their lack of progress in response to an escalating debt crisis.

With the ECB under intense pressure to play a greater role in tackling the euro zone crisis, Draghi said governments had failed to put into practice decisions underpinning the European Financial Stability Facility — the rescue fund which they have promised to give more firepower without yet explaining how.

Nov 18, 2011

European bank chief urges action on rescue fund

FRANKFURT, Nov 18 (Reuters) – European Central Bank
chief Mario Draghi told euro zone governments on Friday to act
fast to get their rescue fund up and running, expressing
exasperation at their lack of progress in response to an
escalating debt crisis.

With the ECB under intense pressure to play a greater role
in tackling the euro zone crisis, Draghi said governments had
failed to put into practice decisions underpinning the European
Financial Stability Facility — the rescue fund which they have
promised to give more firepower without yet explaining how.

Nov 18, 2011

ECB’s Draghi presses governments to act on crisis

FRANKFURT (Reuters) – European Central Bank President Mario Draghi pressed euro zone governments on Friday to kick-start the bloc’s EFSF rescue fund, showing exasperation at their slow progress and resisting pressure for the ECB to do more.

Other senior ECB policymakers joined Draghi in pushing the governments to act, saying the central bank should not be asked to go beyond its mandate of delivering price stability.

Nov 18, 2011

ECB’s Draghi presses govts to act on crisis

FRANKFURT, Nov 18 (Reuters) – European Central Bank
President Mario Draghi pressed euro zone governments on Friday
to kick-start the bloc’s EFSF rescue fund, showing exasperation
at their slow progress and resisting pressure for the ECB to do
more.

Other senior ECB policymakers joined Draghi in pushing the
governments to act, saying the central bank should not be asked
to go beyond its mandate of delivering price stability.

Nov 15, 2011

Banks should boost capital, not cut loans: EBA

FRANKFURT (Reuters) – The European Union’s banking regulator wants lenders to bolster their capital bases rather than cut back on lending, as they gird themselves to cope with the sovereign debt crisis.

If banks opt to shrink balance sheets it could potentially harm the economy, Andrea Enria, chairman of the European Banking Authority, said on Tuesday at a conference.