Investment strategy correspondent, London
Ingrid's Feed
Feb 23, 2015

Moscovici raises threat of French budget sanctions but eyes deal

PARIS (Reuters) – The EU’s top economics official raised the threat of sanctions against France over its budget slippages on Monday but made clear that he would prefer to reach a deal that would grant Paris yet another reprieve in exchange for reform pledges.

The European Commission is due to say this week whether it considers that France’s efforts to reform its economy and cut its deficit are sufficient, despite repeated failures to meet fiscal goals.

Feb 19, 2015

France tells EU it will act further on deficit if needed

PARIS (Reuters) – France is seeking to fend off the risk of EU sanctions over its budget deficit by telling the European Commission it will meet its structural deficit target this year, even if it means taking extra action to do so.

The European Commission is scheduled to rule on France’s budget deficits on Feb. 27. Theoretically, it could impose a fine, but a compromise is much more likely.

Feb 17, 2015

Hollande’s flagship economic reform law faces parliamentary test

PARIS, Feb 17 (Reuters) – Francois Hollande faces a major
test on Tuesday when his flagship economic reform bill is put to
parliament, 10 days before the European Commission rules on
whether France’s reforms go far enough to avoid sanctions for
its budget slippages.

The bill cuts red tape in a wide variety of areas including
allowing more shops to open on Sundays and evenings, speeding up
dismissal procedures, opening up long-distance bus routes and
exposing the legal professions to more competition.

Feb 16, 2015

Greece defies creditors, seeking credit but no bailout

BRUSSELS (Reuters) – Talks between Greece and euro zone finance ministers over the country’s debt crisis broke down on Monday when Athens rejected a proposal to request a six-month extension of its international bailout package as “unacceptable”.

The unexpectedly rapid collapse raised doubts about Greece’s future in the single currency area after a new leftist-led government vowed to scrap the 240 billion euro bailout, reverse austerity policies and end cooperation with EU/IMF inspectors.

Feb 12, 2015

Greece agrees to talk to creditors in EU debt progress

BRUSSELS (Reuters) – Greece agreed on Thursday to talk to its creditors about the way out of its hated international bailout in a political climbdown that could prevent its new leftist-led government running out of money as early as next month.

Prime Minister Alexis Tsipras, attending his first European Union summit, agreed with the chairman of euro zone finance ministers, Jeroen Dijsselbloem, that Greek officials would meet representatives of the European Commission, the European Central Bank and the IMF on Friday.

Feb 11, 2015

Greek finance minister enters euro zone lions’ den

ATHENS/BRUSSELS (Reuters) – Greek Finance Minister Yanis Varoufakis began tense talks with euro zone finance ministers on Wednesday after his new leftist-led government won a parliamentary confidence vote for its refusal to extend an international bailout.

The former academic said before leaving Athens he was ready for a clash with euro zone paymaster Germany and its allies over Greece’s decision to scrap austerity measures, end cooperation with the “troika” of EU/ECB/IMF officials overseeing its bailout programme and demand a “haircut” reducing its debt burden.

Feb 7, 2015

Different delivery, one message to Greece’s new leaders

ROME/PARIS (Reuters) – In Paris and Rome, it was sugar coated; in Berlin and Frankfurt unequivocal. But the message from European capitals to Greece’s new leaders was the same at every stop on last week’s tour – stick to your commitments.

Prime Minister Alexis Tsipras will head to his first European summit on Thursday duly warned that it will be near impossible, as Athens wants, to rip up pledges made during the country’s four-year international bailout. Tsipras and his aides were also advised to learn the ways of diplomatic custom.

Feb 3, 2015

French finance minister: Europe budget sanctions ‘not acceptable’

PARIS (Reuters) – The European Commission must take low inflation and growth into account to give countries like France more time to rein in their budget deficits, Finance Minister Michel Sapin told Reuters, saying a “Europe of sanctions” was not acceptable.

The EU executive will rule in March on the budgets of repeat offenders France, Italy and Belgium after twice postponing its decision last year in order to give them more time to prove they were taking the right steps to get their deficits down to EU limits.

Feb 3, 2015

Greece cannot play France off against Germany -minister

PARIS (Reuters) – France’s finance minister warned Athens against any attempt to play Paris off against Berlin over Greece’s debt crisis, saying a Franco-German agreement was key to striking a deal that would help Greeks and ensure they met their commitments.

Greece’s demand for time to negotiate a “new deal” with its EU peers is reasonable as long as it comes up quickly with the basis for a reform plan that can be gradually beefed up, Michel Sapin told Reuters in an interview a day after he met Athens’ new finance minister.

Feb 1, 2015

Greece starts drive to sell new debt deal to doubting Europe

PARIS/ATHENS, Feb 1 (Reuters) – Greece’s leftist government
began its drive to persuade a sceptical Europe to accept a new
debt agreement on Sunday while it starts to roll back on
austerity measures imposed under its existing bailout agreement.

After a turbulent first week in office, the new government
has made clear it wants to end the existing arrangement with the
European Union, the European Central Bank and International
Monetary Fund “troika” when its aid deadline expires on Feb. 28.