If Britain goes ahead and leaves the European Union in March next year as a consequence of the referendum held in June 2016, the positives of such a move would be greater for the EU than for the UK.
I was reading the other day on the blog of excellent Bucharest-based economist Radu Craciun his latest article: “Is Eastern Europe the EU’s scapegoat?” When I read the headline, I thought the article was about Brexit; but in fact, Radu writes about how some experts in the EU claim that the single currency was created as a way to maintain the unity of the Union after it expanded “too rapidly” to the East.
Well, that’s new. I didn’t realise that, besides causing English people to behave irrationally against their own interests and vote to leave the world’s biggest trading bloc, Eastern Europeans are also guilty of inspiring what could turn out to be the world’s least successful currency union.
The financial crisis of 2007-2009 has left a lot of collapsed Spanish castles in its wake, hitting Spanish banks hard.
Pictures of Spain’s ghost towns were splashed across the world’s newspapers at the beginning of the eurozone debt crisis. True, they weren’t as impressive as the Chinese ghost cities, but they show what excess debt and an inflated real estate sector can do to a country – and to its banks.
However, more than five years on since the crisis, the story is slowly changing.
Italian banks’ bad loans are holding back its economy, but creating a “bad bank” and dumping them there is not a good idea, because deeper reforms are needed, a European rating agency has warned.
By Patrick Selley
I once attended a speed awareness course, and everyone in the room was asked to give a reason for why drivers habitually break the speed limit. From the range of answers given, I was surprised that no one gave the only real reason.
Bank shareholders hoping that profits will rise rapidly in the quarter ahead are likely to be disappointed.
The various constraints placed on banks after they were saved from bankruptcy at the cost of increased social inequality and poverty will limit the financial institutions’ earnings.
The past couple of weeks had been relatively quiet for Russia and Ukraine due to the Russian orthodox Christmas holiday, but this week the rollercoaster started again.
The European Central Bank’s long-awaited quantitative easing (QE) programme will not actually do much to lift the eurozone from economic stagnation and deflation, a strategist warned.
For German equities, it looks like 2005 all over again, and that’s a good thing.
Investors are punishing the eurozone’s biggest economy unnecessarily, so it may be the time for the brave to take a dip into German stocks.
Banks still have to deal with the consequences of their excesses, which brought on the financial crisis. Their reputation is in tatters, fines are slapped on them almost daily and regulation controls almost their every step.
But their plight doesn’t stop here. The biggest challenge they’re facing is slowly becoming obvious – and it could change the industry forever.