Senior Economics Correspondent, Germany
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Feb 12, 2014

ECB bond-buying intact and ready after court decision: Coeure

FRANKFURT (Reuters) – The status of the European Central Bank’s flagship crisis-fighting tool is unchanged after the assertion of Germany’s top court that it exceeded the bank’s mandate, ECB Executive Board member Benoit Coeure said.

Speaking to Reuters as part of a series of interviews with top policymakers across the euro zone, Coeure said the ECB had no need to use the so-called Outright Monetary Transactions (OMT) program now.

Feb 10, 2014

ECB bond-buy tool weakened by German court: ZEW chief

FRANKFURT (Reuters) – The European Central Bank’s flagship crisis-fighting tool has been severely blunted by the assertion of Germany’s top court that it exceeded the ECB’s mandate, the head of the German ZEW think tank said.

Germany’s Constitutional Court will refer a complaint against the plan to the European Court of Justice but, in an apparent attempt to direct the ECJ’s deliberations, said the scheme appeared to violate a ban on the ECB funding governments.

Feb 4, 2014

ECB sterilisation suspension only one of several policy options

FRANKFURT, Feb 4 (Reuters) – The European Central Bank has
discussed the possibility of suspending operations to soak up
money it spent on sovereign bonds but this is just one policy
option and is unlikely to be decided this week, people familiar
with the issue say.

Ending the so-called “sterilisation” operations would inject
about 175 billion euros ($237 billion) of liquidity into the
financial system, which would help ease strains in euro zone
money markets.

Feb 2, 2014

Inflation slump tests ECB’s readiness to act

FRANKFURT (Reuters) – The spectre of deflation gripping the euro zone hangs over European Central Bank policymakers meeting this week and may even jog them into fresh action to pep up the bloc’s weak economic recovery.

A fall in euro zone inflation to 0.7 percent last month – far below the ECB’s target of just under 2 percent – highlighted the risk and led some analysts to predict an interest rate cut at Thursday’s policy meeting.

Jan 31, 2014

Shock euro zone inflation drop puts heat on ECB to act

BRUSSELS/FRANKFURT (Reuters) – An unexpected drop in euro zone inflation raises pressure on the European Central Bank to consider fresh policy action next week to counter deflation risks and support a weak euro zone recovery that may be running out of steam.

Inflation slowed this month to 0.7 percent from 0.8 percent in December, confounding market expectations for a rise to 0.9 percent and matching a low hit last October. The ECB responded then by cutting its interest rates to record lows.

Jan 27, 2014

Emerging markets rout a reality check for Davos elite

DAVOS, Switzerland (Reuters) – Just as they were getting their swagger back, the global elite stumbled last week on an emerging market sell-off that served as a reminder of the risks the global economy still faces.

Veterans of the annual World Economic Forum in Davos seized on the wobble as a warning that expectations for a smooth upswing were misplaced, and that recovery would likely be volatile and uneven.

Jan 26, 2014

Analysis: Emerging markets rout a reality check for Davos elite

DAVOS, Switzerland (Reuters) – Just as they were getting their swagger back, the global elite stumbled last week on an emerging market sell-off that served as a reminder of the risks the global economy still faces.

Veterans of the annual World Economic Forum in Davos seized on the wobble as a warning that expectations for a smooth upswing were misplaced, and that recovery would likely be volatile and uneven.

Jan 25, 2014

Germany’s Schaeuble raps EU’s Rehn for ‘nonsense’ comments on rebalancing

DAVOS, Switzerland (Reuters) – German Finance Minister Wolfgang Schaeuble described as “nonsense” EU Economic and Monetary Affairs Commission Olli Rehn’s view that prolonged low inflation in the euro zone would make the necessary economic rebalancing harder to achieve.

In an interview with Reuters at the World Economic Forum in Davos on Saturday, Schaeuble said he would distance himself from Finland’s Rehn if that were his opinion as an EU Commissioner.

Jan 25, 2014

Germany’s Schaeuble raps EU’s Rehn for ‘nonsense’ comments on rebalancing

DAVOS, Switzerland (Reuters) – German Finance Minister Wolfgang Schaeuble described as “nonsense” EU Economic and Monetary Affairs Commission Olli Rehn’s view that prolonged low inflation in the euro zone would make the necessary economic rebalancing harder to achieve.

In an interview with Reuters at the World Economic Forum in Davos on Saturday, Schaeuble said he would distance himself from Finland’s Rehn if that were his opinion as an EU Commissioner.

Jan 22, 2014

India prepared for Fed tapering, growth to accelerate: Chidambaram

DAVOS, Switzerland (Reuters) – Developing economies will feel some impact from the U.S. Federal Reserve’s winding down of its stimulus but India is better prepared than last year, Finance Minister Palaniappan Chidambaram said on Wednesday.

Speaking at the Davos economic forum, Chidambaram added that Indian growth was poised to accelerate. The ruling Congress party is trying to buoy the economy to win back voters in a national election expected between April and May.

    • About Paul

      "I lead our economic news file from Berlin, where we report on the performance of the German economy – Europe’s largest – and economic policy: everything from financial regulation to dealing with the euro zone debt crisis. I previously reported on political and economic news from Paris and on earlier assignments worked in Frankfurt, Vienna and London."
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