European Central Bank President Mario Draghi makes a lengthy appearance in the European Parliament in Strasbourg. He will doubtless reassert that the ECB would start printing money if necessary but, as we reported last week, policymakers are fervently hoping they won’t have to and that a raft of measures announced in June will do enough to lift the economy and inflation.
Bundesbank chief Jens Weidmann fired another broadside over the weekend, saying rates were too low for Germany and policy should remain expansive for no longer than absolutely necessary.
With less than a week to run to the July 20 deadline for a deal, Iran and the six world powers are miles apart on Tehran’s nuclear programme. U.S. Secretary of State John Kerry said on Sunday major differences persist – largely over uranium enrichment — with Iran and Tehran did not demur.
The six want Iran to scale back its nuclear programme to deny it any capability to quickly produce atomic bombs. Iran says its activities are entirely peaceful and want crippling sanctions lifted as soon as possible. Kerry will meet his Iranian counterpart Javad Zarif for a second day in a row on Monday to see if progress can be made.
Centre-left political novice Miro Cerar won an election in Slovenia on Sunday. Cerar supports liberalising the economy and labour market rules and selling off smaller state firms. But he has come out against the major slated sales of Slovenia’s telecoms operator and international airport and pledged on Sunday to rewrite a reform package agreed with euro zone ministers. That has investors wondering how public debt will be reined in.