Euro Crisis

Former head of the International Monetary Fund Rodrigo Rato is due to appear in a Spanish court over accusations of criminal fraud relating to his involvement with mortgage lender Bankia. Bankia, which the Spanish government gained a controlling stake of in May, is only one of a number of banks facing legal cases. Novacaixagalicia, Banco […]

ECB executive board member Jörg Asmussen has warned that progress to resolve the Greek financial crisis has “virtually stalled” over the last three months since the last bailout agreement. Speaking at a conference in Athens Asumussen argued that “the first priority for the new Greek government has to be getting the programme back on track” […]

June 6 Spanish economic minister Luis de Guindos has today denied that the country is seeking a bailout of its banking sector. June 7 UK Prime Minister David Cameron has argued that Germany ‘cannot act alone’ to resolve the eurozone crisis. June 11 European and Asian stock markets have risen sharply following news of a […]

It was grim deadlock at the EU Summit in Brussels last night, as Italy and Spain refused to let an overall deal progress until receiving guarantees the eurozone would act to cut soaring borrowing costs. European stock markets rose sharply this morning on the surprise news Germany had agreed to new, less Draconian bail-out measures. Spain and Italy’s […]

European nations could “go to hell” if they fail to cooperate on keep interest rates on debt down argues Italian Premier Mario Monti. Speaking ahead of a European summit Mr Monti stated that “political forces which say ‘let European integration, let the euro, let this or that large country go” would be a “disaster for […]

German Chancellor Angela Merkel has called Eurobonds “economically wrong and counterproductive” in an attempt to stop the proposed method of solving the European debt crisis. Supported by France, Italy and Spain Eurobonds would mutualise the debt of countries within the Eurozone. Germany, the zone’s largest economy, instead proposes a permanent rescue fund, the European Stability […]

Spain has this morning sold 3.0 billion euros worth of short-term debt, but with the highest rates since November. Yield on three-month bonds was 2.362% –  a huge increase from last month’s 0,846%. Meanwhile yield on six-month bonds was 3.237% up from 1.737%, the Guardian reported. Credit ratings agency Moody’s last night downgraded 28 Spanish banks. […]

Leading hedge fund manager George Soros has argued that “Germany must take full responsibility for the financial and political consequences” if it blocks the creation of a eurozone fund to buy and hold debt of crisis hit countries. Arguing for a debt reduction fund that would issue bonds supporting by all eurozone states Mr Soros […]

Fifteen major global financial institutions were downgraded by Moody’s late last night, reflecting losses the ratings agency says are likely due to the current, ongoing volatile state of capital markets. Affected lenders included British banking giants Barclays, HSBC, RBS and Lloyds as well as Credit Suisse. The Swiss institution was dealt the harshest and most unexpected blow as...

A three-party coalition government has been formed in Greece in support of the international bailout and keeping the country in the euro. The leader of the centre-right New Democracy party Antonis Samaras was sworn in yesterday and will head a government that also comprises the socialist Pasok and Democratic Left parties. Whilst broadly supporting the […]