EU Economic and Monetary Affairs Correspondent
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May 3, 2013

France to get more time to cut deficit as euro zone recession bites

BRUSSELS, May 3 (Reuters) – France will get two more years
to meet its budget deficit target because of the country’s poor
economic outlook within a recession-hit euro zone, the European
Commission said on Friday.

Presenting economic forecasts for the next two years, Olli
Rehn, the European monetary affairs commissioner, also confirmed
earlier statements that Spain would get the same leeway.

May 3, 2013

EU sees deeper euro zone recession in 2013, slower deficit cuts

BRUSSELS (Reuters) – The euro zone economy will contract by more than expected this year and budget deficits will decline more slowly, the European Commission said on Friday as it set out forecasts for the next two years.

France, Spain, Italy and the Netherlands – four of the five largest euro zone economies – will be in recession through 2013, the Commission’s forecasts showed, with only Germany, the largest euro zone economy, managing to eke out growth.

May 2, 2013

Analysis: What taxpayer bailouts? Euro crisis saves Germany money

BRUSSELS (Reuters) – Throughout Europe’s debt crisis, northern European leaders have often said they will not stand for taxpayers having to fork out for other countries’ problems, and the notion of “taxpayer-funded bailouts” has taken root.

Yet despite three-and-a-half years of debt and banking turmoil, with bailouts totaling more than 400 billion euros, northern euro zone taxpayers have not actually lost a cent.

May 2, 2013

What taxpayer bailouts? Euro crisis saves Germany money

BRUSSELS, May 2 (Reuters) – Throughout Europe’s debt crisis,
northern European leaders have often said they will not stand
for taxpayers having to fork out for other countries’ problems,
and the notion of “taxpayer-funded bailouts” has taken root.

Yet despite three-and-a-half years of debt and banking
turmoil, with bailouts totalling more than 400 billion euros,
northern euro zone taxpayers have not actually lost a cent.

Apr 20, 2013

Most EU bank union work can be done without law change-Eurogroup head

WASHINGTON, April 20 (Reuters) – The euro zone’s top project
to boost economic growth – banking union – will not be delayed
for now by a row over whether it needs EU law changed because
most of the work can be done before this is settled, a senior
euro zone official said on Saturday.

Jeroen Dijsselbloem, the Dutch finance minister who chairs
the monthly meetings of his euro zone colleagues, said the
dispute on the legal requirements of the banking union can go in
parallel with more technical work on how it would function.

Apr 19, 2013

G20 urges EU to complete banking union fast, Germany digs in heels

WASHINGTON (Reuters) – World financial leaders urged the European Union on Friday to quickly complete its banking union to help growth, but Germany stood firm that the next step toward such a union be through a lengthy and risky process – a change of EU law.

The banking union is one of the key projects to improve the economy of the 17 countries sharing the euro. It would help eliminate many of the problems that now hold back the flow of credit needed to finance a euro zone economic recovery.

Apr 19, 2013

G20 gathers for debate on debt, monetary stimulus

By Jan Strupczewski and Anna Yukhananov

(Reuters) – Finance leaders of the G20 economies gathered on Friday to debate how best to rein in debt levels and the potential dangers from the latest round of aggressive easing of monetary policy from the world’s biggest central banks.

They were also poised to demand swifter resolution to setting guidelines for financial benchmarks like the Libor interest rate in the wake of a global rate-rigging scandal.

Apr 19, 2013

Debt levels, big monetary stimulus on tap at G20

April 19 (Reuters) – Finance leaders of the G20 economies on
Friday were set to debate specific targets for reigning in debt
levels and the potential dangers from the latest round of
aggressive easing of monetary policy from the world’s biggest
central banks.

They were also poised to demand swifter resolution to
setting guidelines for financial benchmarks like the Libor
interest rate in the wake of a global rate-rigging scandal.

Apr 19, 2013

No law change needed or wanted for bank union completion-EU officials

WASHINGTON, April 18 (Reuters) – The European Union can and
should go ahead with setting up a system for winding down banks
without trying to change EU law to give the bank resolution
mechanism a stronger legal basis, senior bloc officials said on
Thursday.

German Finance Minister Wolfgang Schaeuble said last
Saturday that completing the European banking union would
require changes to EU treaties, in a call that could slow
completion of the plan designed to underpin the euro currency.

Apr 19, 2013

EU promises less austerity as G20 debates debt

WASHINGTON (Reuters) – The euro zone will slow its budgetary belt-tightening to help reinvigorate economic growth, a top EU official said on Thursday, highlighting a policy shift the United States has long been pressing for.

“They are preaching to the converted,” EU Economic and Monetary Affairs Commissioner Olli Rehn told Reuters.

    • 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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