Germany’s finance and economy ministers and central bank chiefs meet in Berlin with plenty to discuss.
Italy’s lower house approved Prime Minister Matteo Renzi’s tax-cutting 2015 budget on Sunday. It will now move on to the Senate, where it must be passed by the end of the year. The budget is at the centre of a tussle with the European Commission, which says it does not do enough to reduce the country’s huge public debt.
More cheap loans to banks was the European Central Bank’s answer to boost bank lending to private businesses in the euro zone. But the latest data show credit growth is still contracting and the best some economists came up with is that at least it’s not as bad as it was a year ago when it was shrinking faster.
Two vital gauges of euro zone progress, or lack of it, today.
German inflation for November is forecast to slip to 0.6 percent and will cue up the euro zone figure on Friday, which is predicted to come in at just 0.3 percent. Spanish inflation, due earlier, is forecast to come in at -0.3 percent.
Brazil’s newly-re-elected government is set to announce on Friday that the recession that began at the start of 2014 is now over. But a minefield of risks surrounding Latin America’s largest economy recommends caution before celebration.
New European Commission President Jean-Claude Juncker will unveil his investment plan for the bloc to the European Parliament today which aims to generate 315 billion euros of investment and lift growth onto a higher plane. The details were put out last night and there’s no new money in it. Instead, 21 billion euros of funding is expected to leverage private investment of a whopping 15 times that amount.
Even as the expected date for an eventual interest rate rise in the U.S., Britain and Canada keeps getting pushed further into the future, the outlook for residential housing markets in these countries is also starting to cool.
It’s been more than two years since euro zone banks increased net lending to private businesses. And it’s been nearly half a year since the European Central Bank launched a new plan to turn that situation around.