Correspondent, Brussels
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Aug 13, 2014

Don’t repeat mistakes of Irish bailout, former IMF official warns Portugal

FRANKFURT, Aug 13 (Reuters) – Portugal is making the same
costly mistake as Ireland by rescuing a troubled bank and
largely sparing its bondholders losses, one of the architects of
Ireland’s bailout has warned.

Shortly after finishing a painful economic overhaul in
return for emergency loans, Portugal recently unveiled the
surprise rescue of a major bank with an injection of almost 5
billion euros ($6.7 billion) chiefly using state funds.

Aug 10, 2014

Europe’s fragile economy put to test as Ukraine, Iraq sour mood

FRANKFURT (Reuters) – Investors will gauge the strength of the euro zone’s fragile economy this week as escalating conflicts in Ukraine and Iraq darken the mood globally.

In stark contrast to the United States and Britain, which are growing strongly, economic output in the euro bloc is likely to have all but ground to a halt in the three months to June. Its star economy, Germany, is losing momentum and Italy is sliding back into recession.

Aug 7, 2014

ECB says Ukraine crisis threatens EU recovery, keeps rates low

FRANKFURT (Reuters) – The Ukraine crisis has heightened risks to the euro zone’s weak and uneven economic recovery, and a tit-for-tat sanctions war could compound the problem, the European Central Bank said on Thursday as it held borrowing rates at record low levels.

ECB President Mario Draghi cited instability across the Middle East as well as tensions between Russia and Western countries over the conflict in Ukraine among factors weighing on growth in the single currency area. Moscow has retaliated for European Union sanctions by halting imports of food from Europe.

Aug 7, 2014

ECB keeps rates low as Ukraine casts cloud over Europe

FRANKFURT, Aug 7 (Reuters) – The European Central Bank held
borrowing rates on Thursday as it pinned its hopes on lending
measures to bolster a struggling euro zone economy facing
further damage from the Ukraine conflict.

Having cut interest rates to record lows in June, the euro
zone’s central bank kept them steady, waiting to see whether
schemes such as the ultra-cheap four-year loans to banks it will
launch in September will prompt them to lend more.

Aug 4, 2014

Exclusive-Europe mulls handing back reins of reform to Athens

FRANKFURT/ ATHENS (Reuters) – Brussels is considering scrapping the troika that supervises Greek reforms to allow Athens to pursue its own plan to bolster the economy in return for a drip-feed of debt relief, European officials say.

The discussion, still in its early stages, will gather pace as Greece and its euro zone backers chart a new course for the country with its second European bailout programme due to end later in 2014.

Aug 4, 2014

Europe mulls handing back reins of reform to Athens

FRANKFURT/ ATHENS (Reuters) – Brussels is considering scrapping the troika that supervises Greek reforms to allow Athens to pursue its own plan to bolster the economy in return for a drip-feed of debt relief, European officials say.

The discussion, still in its early stages, will gather pace as Greece and its euro zone backers chart a new course for the country with its second European bailout program due to end later in 2014.

Jul 30, 2014

Banks loosen purse strings for euro zone businesses

FRANKFURT (Reuters) – Euro zone banks have loosened their lending terms for businesses for the first time since the start of the financial crisis, the European Central Bank said on Wednesday, reducing one of the chief obstacles to an economic rebound.

Since the start of a banking collapse, which struck Germany in 2007 with the near failure of small-business lender IKB, banks in Europe have remained reluctant to lend even as the clouds of crisis gradually lift.

Jul 29, 2014

Russia sanctions threaten to blow euro zone off course

BERLIN/FRANKFURT (Reuters) – The knock to confidence from harsher European sanctions on Russia could spoil the euro zone’s budding economic recovery even if it shrugs off the fallout on trade.

Following months of hesitation, the European Union will seek on Tuesday to seal the first broad economic sanctions on Russia – its third-biggest trading partner – following the downing of a Malaysian airliner over territory controlled by pro-Moscow rebels in eastern Ukraine.

Jul 27, 2014

Investors pin growth hopes on U.S. as Ukraine crisis casts shadow on Europe

FRANKFURT (Reuters) – With the prospect of stiffer sanctions against Russia rattling confidence in Europe, investors will be looking to the United States and China to underpin the global economy.

Wednesday’s U.S. gross domestic product (GDP) reading and jobs data on Friday will help markets to judge the strength of the economy’s rebound and the likely speed of the Federal Reserve’s return to more conventional monetary policy. The Fed meets on Tuesday and Wednesday.

Jul 16, 2014

Europe’s leaders wrangle over candidates for top EU jobs

BRUSSELS, July 16 (Reuters) – European Union leaders on
Wednesday were seeking agreement on a package of top jobs for
the bloc in hopes of signing them off at a summit later in the
day, including the appointment of a new foreign policy chief.

The 28 leaders were also set to step up sanctions against
Moscow over separatist violence in eastern Ukraine, according to
a draft statement seen by Reuters.

    • About John

      "I am a Reuters correspondent in Brussels, writing about the European Union. I moved here last year from Germany, where I had reported about the financial crisis, turning up numerous scoops and even winning a prestigious business reporting award. Beforehand, I worked with The Sunday Times in London."
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