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.
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.
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.
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
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.
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.
STRASBOURG (Reuters) – European Commission President Jean-Claude Juncker urged the main political parties in Greece to back the country’s third bailout and carry out long-delayed reforms regardless of who wins elections scheduled for this month.
His message in his first State of the Union address to the European Parliament in Strasbourg on Wednesday came as opinion polls show no clear winner in the Sept. 20 elections, with the leftist Syriza party tied with conservative New Democracy.
ANKARA (Reuters) – World financial leaders will agree to calibrate and communicate monetary policy carefully to avoid triggering capital flight, but will not call an expected U.S. rate rise a risk to growth, a draft communique showed on Friday.
Many emerging market economies are concerned that when the U.S. Federal Reserve raises borrowing costs, investors will withdraw from other markets and buy dollar assets, weakening other currencies and creating turbulence as capital flees.
ANKARA (Reuters) – The U.S. Federal Reserve is coming under pressure from emerging markets not to raise rates too soon as turmoil in China threatens global growth, but the G20 will not publicly call for any delay, delegates meeting in Turkey said on Friday.
Slower growth in China and rising market volatility have boosted the risks to the global economy, the International Monetary Fund warned ahead of the G20 meeting, citing a mix of potential dangers such as depreciating emerging market currencies and tumbling commodity prices.
ANKARA (Reuters) – Luxembourg Finance Minister Pierre Gramegna, whose country holds the rotating presidency of the European Union, said on Friday he was realistic about the prospect of interest rate hikes by the U.S. Federal Reserve.
“We cannot live all the time on easy money,” Gramegna told Reuters at a meeting of G20 finance ministers and central bank governors in the Turkish capital Ankara.
BRUSSELS/ FRANKFURT (Reuters) – With low price inflation serving as a reminder of the euro zone’s delicate health, the European Central Bank is having to reassure market investors that it can do yet more to help the economy.
Fresh data showed on Monday that inflation throughout the 19-country bloc was just 0.2 percent – illustrating that while the euro zone’s economy is stabilising, it is doing so only at a very low level.