EU Economic and Monetary Affairs Correspondent
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Oct 8, 2015

Euro zone aims to cap Greek debt servicing at 15 percent of GDP

LIMA (Reuters) – Euro-zone governments, Greece’s biggest creditors, agree that debt relief for Athens should be accomplished by capping its debt servicing costs at 15 percent of gross domestic annually, the chairman of the euro zone finance ministers, Jeroen Dijsselbloem, said on Thursday.

But discussions on whether the relief should be granted up front, over time as some conditions are met, or as a mix of the two, would only start later this year, after Greece successfully passes the first assessment by the creditors of its bailout reforms, he said.

Oct 2, 2015

Greece likely to meet deadline for bank money release: euro zone officials

BRUSSELS, Oct 2 (Reuters) – Greece is likely to qualify for
recapitalisation funds for its banks by a Nov. 15 deadline
because the payment depends mainly on financial sector reforms
that it can implement by then, euro zone officials said on

The euro zone bailout fund has up to 25 billion euros ($28
billion) earmarked for the recapitalisation of the Greek banking
sector under Athens’ third bailout.

Sep 30, 2015

Euro zone inflation turns negative, putting pressure on ECB

BRUSSELS/FRANKFURT, Sept 30 (Reuters) – Euro zone inflation
turned negative again in September as oil prices tumbled,
raising pressure on the European Central Bank to beef up its
asset purchases to kick start anaemic price growth.

Prices fell by 0.1 percent on an annual basis, the first
time inflation has dipped below zero since March, missing
analyst expectations for a zero reading after August’s 0.1
percent increase.

Sep 22, 2015

EU backs refugee-sharing plan, exposing east-west rift

BRUSSELS (Reuters) – The European Union approved a plan on Tuesday to share out 120,000 refugees across its 28 states, overriding vehement opposition from four ex-communist eastern nations.

The European Commission, the EU executive, had proposed the scheme with the backing of Germany and other big powers in order to tackle the continent’s worst refugee crisis since World War Two.

Sep 17, 2015

Exclusive: Euro zone mulls capping Greek debt servicing cost at 15 percent/GDP

BRUSSELS (Reuters) – Euro zone governments, Greece’s biggest creditors, are ready to cap the country’s debt servicing costs at 15 percent of GDP annually over the long-term as part of the promised debt relief to help the economy grow, euro zone officials have told Reuters.

It would mean the nominal payment would be lower if the Greek economy were struggling, higher if it was more robust.

Sep 16, 2015

Euro zone inflation grinds even slower in August, raises expectations of more QE

BRUSSELS (Reuters) – Euro zone inflation all but evaporated in August, revised data showed on Wednesday, raising market expectations that the European Central Bank could step up its government bond buying program.

The European Union’s statistics office Eurostat said consumer prices in the 19 countries sharing the euro were flat on the month and up just 0.1 percent from the same month last year, slowing down from a 0.2 percent annual rise logged in July.

Sep 15, 2015

Europe’s Frontex gears up to thwart unwanted migrants

BRUSSELS (Reuters) – Europe’s border agency Frontex is preparing to speed up identification of illegal migrants and help deport them in large numbers as irregular arrivals this year topped a record half a million.

“When you have up to 40 percent of migrants coming from a third country not granted refugee status and if nothing happens, if they are not returned, what message does the EU convey to potential migrants?” Frontex head Fabrice Leggeri told Reuters a day after EU ministers agreed to grant the agency more powers and resources.

Sep 12, 2015

Germany will back sharing bank risk only responsibility shared as well

LUXEMBOURG (Reuters) – Germany made clear it would agree to sharing more banking risk only if governments first proved they were ready to share more responsibilities as well, at a meeting of European Union finance ministers on Saturday.

The ministers were discussing a deposit guarantee plan, an idea backed by the European Commission. It wants to propose steps toward a deposit insurance and reinsurance scheme in October, Commission Vice-President Valdis Dombrovskis said.

Sep 11, 2015

EU, Germany head for clash over deposit insurance plan

BERLIN/LUXEMBOURG, Sept 11 (Reuters) – The European
Commission and Germany are set to clash on Saturday over a plan
to guarantee bank deposits, which the EU sees as a necessary
confidence-building step but Berlin considers an unfair pooling
of risk.

Commission President Jean-Claude Juncker said in his state
of the union speech to the European Parliament on Wednesday that
he would soon make a concrete proposal on steps towards a
European Deposit Insurance/Reinsurance Scheme.

Sep 10, 2015

Greek bailout review in October to pave way for debt talks

BRUSSELS, Sept 10 (Reuters) – International creditors expect
the first review of Greek reforms under the latest bailout to
start in October, bringing changes to a memorandum of
understanding signed with Athens and paving the way for debt
rescheduling talks, euro zone officials said.

Euro zone finance ministers will discuss preparations for
Greek reforms envisaged by the third bailout, worth 86 billion
euros ($96.8 billion), at an informal meeting in Luxembourg on
Saturday. No implementation review is possible before Greece’s
Sept. 20 parliamentary elections.

    • About Jan

      "Based in Brussels since 2005, I cover economic policy news from the European Commission, EU and euro zone economic data, monthly meetings of EU/euro zone finance ministers as well as G7/8/20 meetings. Before Brussels I was a correspondent in Stockholm for five years, covering technology stocks and the Swedish central bank. I was earlier a correspondent in Poland for seven years, covering macroeconomic policy, bond, forex and money markets, the central bank and politics."
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