Eva's Feed
Nov 14, 2011

Pressure for bigger ECB role in crisis must end: Weidmann

FRANKFURT (Reuters) – Bundesbank President Jens Weidmann said on Monday international pressure for the European Central Bank to play a bigger role in tackling the euro zone debt crisis must end as it could undermine the ECB’s hard-won credibility.

British Prime Minister David Cameron, U.S. President Barack Obama and Russian Prime Minister Vladimir Putin are among those who have recently called for the 17-country bloc’s central bank to take a bigger role in resolving the crisis.

Nov 10, 2011

ECB’s Bini Smaghi resignation raises doubts over independence

FRANKFURT (Reuters) – Lorenzo Bini Smaghi has resigned from his post as member of the European Central Bank’s Executive Board to join Harvard University, ending a diplomatic row between France and Italy, but raising questions over the ECB’s independence under its new chief.

Bini Smaghi had been under pressure to leave his post following the appointment of fellow Italian Mario Draghi as head of the ECB, which left France with no national representative on the board since Draghi took over from Frenchman Jean-Claude Trichet in November.

Nov 7, 2011

ECB ramps up bond buys in Draghi’s first week

FRANKFURT (Reuters) – The European Central Bank more than doubled its purchases of government bonds in the first week of Mario Draghi’s presidency, data showed, with no let-up expected in the controversial program until the euro zone debt crisis eases.

Purchases totaled to 9.52 billion euros, Monday’s ECB bond-buying data showed.

Nov 4, 2011

ECB should end bond purchases soon, Stark says

FRANKFURT, Nov 4 (Reuters) – European Central Bank
policymaker Juergen Stark urged the bank on Friday to call an
early halt to its bond-buying programme, stressing it sees the
plan as temporary even as it faces pressure to scale purchases
up to tackle the euro zone crisis.

The controversial programme has come into increasing focus
as Greece’s uncertain future in the euro zone deepens the bloc’s
crisis. Many analysts see the ECB bond-buy plan, and the
firepower it could unleash, as the only way to bring calm.

Nov 3, 2011

ECB surprises with rate cut, cautious on bond buys

FRANKFURT, Nov 3 (Reuters) – The European Central Bank cut
interest rates by a quarter point to 1.25 percent in a surprise
move on Thursday and President Mario Draghi said the euro zone
could subside into a “mild recession” in the latter part of
2011.

The Italian has walked into a maelstrom in his first week at
the ECB’s helm, with euro zone leaders contemplating a future
without Greece and economic policy paralysis in his home country
threatening to pitch Rome into the storm.

Nov 3, 2011

ECB surprises with rate cut, sees “mild recession”

FRANKFURT (Reuters) – The European Central Bank cut interest rates by a quarter point to 1.25 percent in a surprise move on Thursday and President Mario Draghi said the euro zone could subside into a “mild recession” in the latter part of 2011.

The Italian has walked into a maelstrom in his first week at the ECB’s helm, with euro zone leaders contemplating a future without Greece and economic policy paralysis in his home country threatening to pitch Rome into the storm.

Nov 1, 2011

Spotlight on Draghi’s ECB debut as crisis escalates

FRANKFURT (Reuters) – Mario Draghi faces a baptism of fire on his debut as ECB president and a highly-charged decision over escalating the bank’s response to the deepening euro zone crisis.

Greek Prime Minister George Papandreou’s shock pledge to hold a referendum on a new bailout package has thrown Greece’s euro zone membership into question, raised market pressure on Draghi’s native Italy and left the European Central Bank as the only short-term bulwark against euro zone contagion.

Nov 1, 2011

Spotlight on Draghi’s ECB debut as Greek crisis escalates

FRANKFURT (Reuters) – Mario Draghi faces a baptism of fire on his debut as ECB president and a highly-charged decision over escalating the bank’s response to the deepening euro zone crisis.

Greek Prime Minister George Papandreou’s shock pledge to hold a referendum on a new bailout package has thrown Greece’s euro zone membership into question, raised market pressure on Draghi’s native Italy and left the European Central Bank as the only short-term bulwark against euro zone contagion.

Oct 27, 2011

Crisis deal should reduce ECB’s risks-Weidmann

MUNICH, Germany, Oct 27 (Reuters) – The crisis deal agreed
by euro zone leaders will reduce the risks faced by monetary
policy and redraw the boundary line with fiscal policy, European
Central Bank Governing Council member Jens Weidmann said on
Thursday.

European leaders struck a deal in the early hours of
Thursday to provide debt relief for Greece, recapitalise
hard-hit European banks and scale up the currency bloc’s bailout
fund — the European Financial Stability Facility (EFSF) — to
give it firepower of 1.0 trillion euros. (for story click
)

Oct 5, 2011

ECB set to hold rates, boost liquidity; Trichet bows out

Frankfurt (Reuters) – European Central Bank President Jean-Claude Trichet is expected to prepare the ground for a pre-Christmas interest rate cut at his final policy meeting on Thursday and offer banks further protection against the euro zone’s worsening debt storm.

The ECB is widely expected to keep rates unchanged at 1.5 percent when it meets in Berlin, but calls for a cut have grown louder in recent weeks amid signs the euro zone economy is deteriorating further and as Greek default fears weigh heavily on confidence in the bloc’s banks.