EU Economic and Monetary Affairs Correspondent
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Feb 10, 2014

ECB still has ‘big bazooka’ despite court: EU’s Rehn

BRUSSELS (Reuters) – The European Central Bank still has a “big bazooka” with plenty of ammunition to preserve the euro despite a German constitutional court statement that its bond-buying plan is probably illegal, EU economics chief Olli Rehn said on Monday.

Rehn also urged the ECB to act to ensure that abnormally low inflation in the euro zone rises towards the bank’s target of just below two percent.

Jan 27, 2014

Euro zone may scrap option of direct bank recapitalization in 10 years

BRUSSELS (Reuters) – Euro zone governments are considering inserting a “review clause” into their agreement on the direct recapitalization of banks so that they can reverse or renegotiate the deal in the coming years, officials have told Reuters.

Under the proposal, governments would be able to review direct recapitalization – one of the most hard-fought-over principles of the debt crisis – after 10 years, once a single euro zone bank resolution fund (SRF) is in place.

Jan 14, 2014

Analysis: Greece hopeful, but any debt relief likely to be symbolic

BRUSSELS (Reuters) – Greece expects the euro zone to provide some debt relief to Athens later this year but the impact on its vast liabilities will be little more than symbolic.

The magic bullet for Greece would be the writing-off of some portion of the 240 billion euros in loans it has received from the euro zone since 2010. But Athens is adamant it does not want that and the euro zone is not willing to provide it.

Jan 14, 2014

Greece hopeful, but any debt relief likely to be symbolic

BRUSSELS, Jan 14 (Reuters) – Greece expects the euro zone to
provide some debt relief to Athens later this year but the
impact on its vast liabilities will be little more than
symbolic.

The magic bullet for Greece would be the writing-off of some
portion of the 240 billion euros in loans it has received from
the euro zone since 2010. But Athens is adamant it does not want
that and the euro zone is not willing to provide it.

Dec 18, 2013

Euro zone agrees on bank closure funding; banking union in sight

BRUSSELS (Reuters) – Euro zone finance ministers made progress on Wednesday on some details of a plan to close banks, paving the way for completion of a euro zone ‘banking union’ that is to restore confidence in the financial sector and boost growth.

More than five years into a financial storm that toppled banks and dragged down states from Ireland to Spain, Europe wants to seal its biggest project since the introduction of the euro – a framework to police banks and tackle their problems together.

Dec 18, 2013

Euro zone agrees on bank closure funding; banking union in sight

BRUSSELS, Dec 18 (Reuters) – Euro zone finance ministers
made progress on Wednesday on some details of a plan to close
banks, paving the way for completion of a euro zone ‘banking
union’ that is to restore confidence in the financial sector and
boost growth.

More than five years into a financial storm that toppled
banks and dragged down states from Ireland to Spain, Europe
wants to seal its biggest project since the introduction of the
euro – a framework to police banks and tackle their problems
together.

Dec 18, 2013

Euro zone agrees on bank closure funding; banking union in sight

BRUSSELS, Dec 18 (Reuters) – Euro zone finance ministers
made progress on Wednesday on some details of a plan to close
banks, paving the way for completion of a euro zone ‘banking
union’ that is to restore confidence in the financial sector and
boost growth.

More than five years into a financial storm that toppled
banks and dragged down states from Ireland to Spain, Europe
wants to seal its biggest project since the introduction of the
euro – a framework to police banks and tackle their problems
together.

Dec 17, 2013

Euro zone set for drawn-out battle over banking rules

BRUSSELS (Reuters) – Euro zone finance ministers face difficult talks over their plans for a banking union on Tuesday, including how to pay for the winding up of troubled banks, a deeply divisive issue on which Germany has dug in its heels.

The aim is for ministers to reach agreement in the next 36 hours, so that European Union leaders can sign off on it at a summit on Thursday and Friday. But already officials are warning that an extra finance ministers’ meeting may be necessary at the end of December if a deal cannot be reached this week.

Dec 16, 2013

EU to give itself until mid-2014 to work on reform-for-money plan – draft

BRUSSELS, Dec 16 (Reuters) – European Union leaders will
give themselves until June next year to work out how governments
can sign contracts to conduct reforms and get some form of EU
financial support in return, draft conclusions of an EU summit
this week showed on Monday.

The option of legally committing to a reform in exchange for
money would apply to euro zone countries, but be open also to
non-euro zone members of the 28-nation European Union, the draft
conclusions of the Dec. 19-20 summit said.

Dec 10, 2013

Europe moves closer to scheme to close troubled banks

BRUSSELS, Dec 10 (Reuters) – European Union countries edged
slowly towards agreeing a scheme to shut failing banks on
Tuesday, although a final deal on wider reform to prevent a
repeat financial crisis may not be reached until next week.

After a financial storm that toppled banks and dragged down
states from Ireland to Spain, the question of what to do when a
bank fails remains unanswered.

    • 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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