The European Union needs more non-bank finance. Banks are on the back foot. On their own, they won’t be able to fund the jobs and growth the EU is desperate for. Non-bank finance needs to take up the slack.
The Great Debate
Elections will begin on Thursday across the 28 European Union member states to elect national representatives to the European Parliament, which regulates trade, borders and some elements of foreign policy. Though this is a continent-wide election, voters historically use it to send a message to their own nation’s governing party. With the meteoric rise of anti-European populism on the political left and right, however, things promise to buck that trend this time.
from Nicholas Wapshott:
The elaborate gavotte between the American and European economies continues.
While the Federal Reserve has begun to wind down its controversial quantitative easing (QE) program, the European Central Bank (ECB) the federal reserve of the eurozone, has announced it is considering a QE program of its own.
There is a disturbing air of inevitability in Western capitals surrounding Russia’s annexation of Crimea. A growing consensus views this scenario as a rough analogy to Moscow’s recognition of Georgia’s breakaway regions of Abkhazia and South Ossetia after the 2008 war — perhaps more severe, but still manageable.
from Lawrence Summers:
The events in Ukraine have now made effective external support for successful economic and political reform there even more crucial. The world community is rising to the occasion, with concrete indications of aid coming not just from the International Monetary Fund and other international financial institutions but also the United States, the European Union and the G20.