EU Economic and Monetary Affairs Correspondent
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Mar 15, 2013

Cyprus bailout seen shrinking due to tax on deposits

BRUSSELS, March 15 (Reuters) – International lenders are
aiming to give Cyprus a bailout of close to 10 billion euros,
less than initially expected, with taxes imposed on Cypriot
bank depositors likely to fill the gap, officials said on
Friday.

Euro zone finance ministers meet at 1600 GMT along with IMF
chief Christine Lagarde to discuss the bailout, mainly needed to
recapitalise the Mediterranean island’s banks which were hit
hard by a sovereign debt restructuring in Greece last year.

Mar 14, 2013

Austerity debate, social crisis dominate EU summit talks

BRUSSELS (Reuters) – European leaders gathered in Brussels on Thursday, for once under little financial market pressure, with differences over austerity and how best to tackle the social costs of the debt crisis set to dominate.

The two-day summit will give EU leaders a chance to discuss budget policies, with signs that France, Spain and Portugal could be given more time to meet their deficit goals as long as they maintain a debt-cutting trend.

Mar 12, 2013

Cyprus bailout may turn out smaller thanks to deposit tax

BRUSSELS, March 12 (Reuters) – Cyprus may require a smaller
bailout than previously thought because the Mediterranean island
could raise money from a levy on deposits and other taxes, euro
zone officials said.

Initial estimates of the amount of money Cyprus would need
to recapitalise its banks, service debt and cover government
spending were around 17 billion euros ($22 billion).

Mar 12, 2013

EU to make jobs, lending and budgets its 2013 priorities

BRUSSELS (Reuters) – European leaders will cite stronger public finances, normal bank lending and lower unemployment as their priorities this week in trying to pull Europe out of recession and shore up confidence in the euro.

The goals, laid out in a draft agreement for a European Union summit on Thursday and Friday, are part of the bloc’s plan to coordinate economic policies as a means of taming its sovereign debt crisis.

Mar 11, 2013

Factbox: How the EU keeps an eye on national economic policies

BRUSSELS (Reuters) – European Union leaders meet this week to set economic and social policy priorities for the 27-nation bloc, with many countries still struggling with recession and record unemployment, and investor confidence in the euro fragile.

The summit is an important part of a system of policy coordination that EU countries – especially the 17 sharing the euro – developed to prevent another sovereign debt crisis.

Mar 7, 2013

Lenders want Cyprus capital gains tax, Russia could join bailout

BRUSSELS (Reuters) – International lenders would like Cyprus to raise its corporate tax and introduce a levy on capital gains and a financial transaction tax to ensure it can repay a euro zone bailout it asked for last year, euro zone officials said on Thursday.

Cyprus needs up to 17 billion euros – almost as much as its annual gross domestic product – in emergency loans, mostly to recapitalize its oversized banking sector, hit by a Greek debt restructuring, but also to service debt and government expenses.

Mar 5, 2013

EU seeks to help Ireland and Portugal prove bailout success

BRUSSELS, March 5 (Reuters) – European Union finance
ministers sought advice on Tuesday on how to help Ireland and
Portugal demonstrate the success of their painful bailout
programmes by returning to international markets to raise funds.

Ireland took a three-year European Union and International
Monetary Fund financing programme in late 2010 and Portugal
followed in the second quarter of 2011 in exchange for budget
cuts, tax rises and other economic changes.

Mar 5, 2013

EU asks how to smooth Ireland, Portugal market return

BRUSSELS, March 5 (Reuters) – European Union finance
ministers asked international experts on Tuesday to suggest how
best to ease the return of Ireland and Portugal to debt markets
as they near the end of their programmes of emergency funding.

Ireland got a three-year European Union and International
Monetary Fund financing programme in late 2010 and Portugal got
the same in the second quarter of 2011 in exchange for a package
of fiscal austerity and structural reforms.

Mar 4, 2013

Euro zone to bail out Cyprus – no details on how

BRUSSELS (Reuters) – Euro zone finance ministers pledged on Monday to agree a bailout for Cyprus by the end of March, but details of how the rescue will be financed are yet to be sorted out.

Cyprus requested a bailout in June last year but it was not possible to reach an agreement with the last, communist-led government. A new, conservative government took office last month and negotiations have intensified.

Mar 4, 2013

Ireland, Portugal want 15-year extension of EU loans

BRUSSELS (Reuters) – Ireland and Portugal want up to 15 more years to pay back loans to the EU to ease their return to financial markets, but sources said on Monday that while an extension is likely it may not be as long as they want.

Irish Finance Minister Michael Noonan told reporters on Monday he was aware his demand may not be met and did not expect a decision at a meeting of finance ministers on Monday.

    • 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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