Juncker, the head of the eurozone, is here with a bucket of gloom!
He is also hankering for more bureaucratic regulation, something
calculated to stifle any growth before it takes hold. Trade will, in
the end, gravitate to where trade is most entrepreneurial and
profitable, which, on this showing, would not be the eurozone.
There’s been a bout of crazy ‘spinning’ and unjustified optimisam
running round the media (largely while the serious British
commentators take an Easter holiday!). The same, happening in
America, has been brought up sharp by some real news from the housing
market. The UK papers - as I predicted - almost all gave the +4%
rise in mortgages in February over January and completely failed to
notice the elephant in the room the 45% fall compared with the year
before.
Moral - Never believe what you read [unless of course, I’ve written
it! ]
Now the head of the eurozone delivers some home truths to members of
that currency and if you note carefully you will see that Mr Juncker
is wondering if any recovery will be there by 2010
xxxxxxxxxxxxxx cs
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EU OBSERVER 16.4.09
Eurogroup chief predicts huge layoffs
ANDREW WILLIS
The chairman of the 16-nation eurogroup, Jean-Claude Juncker, has
warned that job losses will escalate this year despite measures taken
by EU leaders in recent months to boost the economy.
"There's a risk of mass layoffs by the end of the year," he said
while addressing a conference in Brussels on Wednesday (15 April)
organised by European trade unions.
Mr Juncker, who is also the prime minister of Luxembourg as well as
chair of the eurogroup - the EU nations using the euro currency,
urged world leaders to move ahead with reforms agreed at the recent
G20 meeting in London, but said the EU may need to do more if current
stimulus programmes prove insufficient.
"If by 2010, we see this is not enough, we will have to reconsider.
Now to simply pour more resources in would be premature," he said.
However, he repeated the line iterated by many EU governments in
recent months in the face of US calls for increased stimulus spending
that a clear exit strategy is necessary.
"We are in the process of getting into a spiral of debt ... Let's not
destroy what we have achieved in ten years. Inflation is a true
danger," he said. "We don't have the right to pay off the debt on the
shoulders of future generations."
A top priority now is to unblock the EU's malfunctioning financial
system, he said, and in particular, action was needed to remove toxic
assets held by European banks that are adding to the current
uncertainty.
In Germany on Wednesday, European Central Bank governing council
member and head of the Bundesbank Axel Weber said that the bank would
outline a package of policy measures next month in order to stimulate
the economy.
While the bank is largely predicted to cut interest rates further at
its monthly meeting on 7 May, a string of comments by board members
in recent weeks suggest the bank may also announce new unconventional
policy measures to deal with the crisis. These could include the
purchase of corporate debt.
But Mr Weber said any new ECB measures should first concentrate of
helping European banks due to the systemic role they play in the EU's
economy.
"Additional easing of refinancing by banks, for example in the form
of extending maturities of liquidity operations, should have
priority. Direct intervention into capital markets should take a back
seat," he said.
Mr Weber also mirrored comments made by Mr Juncker regarding the need
to rein in deficit spending.
"The call for more short-term state debt taking is not in my opinion
warranted," he said.
"Germany could exceed the three percent limit this year, and in the
coming year, we can count on an additional marked rise in deficit,"
he said, adding that as a result, the country would likely incur the
EU's excessive deficit procedure for breaching maximum deficits
allowed under EU rules.
=======================
REUTERS 15.4.09
Eurogroup's Juncker: no clear way out of crisis
.
* Juncker: EU fiscal stimulus good for now, may need rethink
* Says Anglo-Saxon financial model dead, regulation needed
* Debt spiral should be avoided to control inflation
* Says forex, stocks tax possible, but only globally
By Marcin Grajewski and Huw Jones
BRUSSELS, April 15 (Reuters) - Measures taken by the European Union
to fight the economic crisis may need a rethink if they fail to bring
results by 2010, Eurogroup Chairman Jean-Claude Juncker said on
Wednesday. Speaking at a conference organised by European trade
unions, Juncker predicted huge lay-offs this year in the EU and urged
world leaders to implement quickly recent decisions by the G20 group
of nations to battle the worst downturn in decades.
He said all financial instruments should be regulated and minimum
wages introduced across the EU as the crisis showed what he called
the failure of the Anglo-Saxon free market model.
"How we will get out of this economic crisis is something I am not
clear in my mind about. How we will emerge from this crisis I don't
know," said Juncker, who chairs monthly meetings of finance ministers
from the 16 countries using the euro.
"What we are experiencing is the end of Anglo-Saxon laissez faire,
which we paid far too much attention to. I believe we need more
regulation of the financial markets," he added.
Juncker said hundreds of billions of euros pledged in fiscal stimuli
by many European governments were sufficient for now.
"If by 2010 we see this is not enough, we will have to reconsider.
Now to simply pour more resources in would be premature," he said.
Juncker also said all 27 EU countries should have minimum wages,
though not necessarily at the same level.
He reiterated EU nations should end at some point huge fiscal outlays
aimed at boosting their economies as these were bound to fuel
inflation and burden future generations with higher taxes.
"We are in the process of getting into a spiral of debt ... Let's not
destroy what we have achieved in ten years. Inflation is a true
danger," he said. "We don't have the right to pay off the debt on the
shoulders of future generations."
EU OBSERVER 16.4.09
Eurogroup chief predicts huge layoffs
ANDREW WILLIS
The chairman of the 16-nation eurogroup, Jean-Claude Juncker, has
warned that job losses will escalate this year despite measures taken
by EU leaders in recent months to boost the economy.
"There's a risk of mass layoffs by the end of the year," he said
while addressing a conference in Brussels on Wednesday (15 April)
organised by European trade unions.
Mr Juncker, who is also the prime minister of Luxembourg as well as
chair of the eurogroup - the EU nations using the euro currency,
urged world leaders to move ahead with reforms agreed at the recent
G20 meeting in London, but said the EU may need to do more if current
stimulus programmes prove insufficient.
"If by 2010, we see this is not enough, we will have to reconsider.
Now to simply pour more resources in would be premature," he said.
However, he repeated the line iterated by many EU governments in
recent months in the face of US calls for increased stimulus spending
that a clear exit strategy is necessary.
"We are in the process of getting into a spiral of debt ... Let's not
destroy what we have achieved in ten years. Inflation is a true
danger," he said. "We don't have the right to pay off the debt on the
shoulders of future generations."
A top priority now is to unblock the EU's malfunctioning financial
system, he said, and in particular, action was needed to remove toxic
assets held by European banks that are adding to the current
uncertainty.
In Germany on Wednesday, European Central Bank governing council
member and head of the Bundesbank Axel Weber said that the bank would
outline a package of policy measures next month in order to stimulate
the economy.
While the bank is largely predicted to cut interest rates further at
its monthly meeting on 7 May, a string of comments by board members
in recent weeks suggest the bank may also announce new unconventional
policy measures to deal with the crisis. These could include the
purchase of corporate debt.
But Mr Weber said any new ECB measures should first concentrate of
helping European banks due to the systemic role they play in the EU's
economy.
"Additional easing of refinancing by banks, for example in the form
of extending maturities of liquidity operations, should have
priority. Direct intervention into capital markets should take a back
seat," he said.
Mr Weber also mirrored comments made by Mr Juncker regarding the need
to rein in deficit spending.
"The call for more short-term state debt taking is not in my opinion
warranted," he said.
"Germany could exceed the three percent limit this year, and in the
coming year, we can count on an additional marked rise in deficit,"
he said, adding that as a result, the country would likely incur the
EU's excessive deficit procedure for breaching maximum deficits
allowed under EU rules.
=======================
REUTERS 15.4.09
Eurogroup's Juncker: no clear way out of crisis
.
* Juncker: EU fiscal stimulus good for now, may need rethink
* Says Anglo-Saxon financial model dead, regulation needed
* Debt spiral should be avoided to control inflation
* Says forex, stocks tax possible, but only globally
By Marcin Grajewski and Huw Jones
BRUSSELS, April 15 (Reuters) - Measures taken by the European Union
to fight the economic crisis may need a rethink if they fail to bring
results by 2010, Eurogroup Chairman Jean-Claude Juncker said on
Wednesday. Speaking at a conference organised by European trade
unions, Juncker predicted huge lay-offs this year in the EU and urged
world leaders to implement quickly recent decisions by the G20 group
of nations to battle the worst downturn in decades.
He said all financial instruments should be regulated and minimum
wages introduced across the EU as the crisis showed what he called
the failure of the Anglo-Saxon free market model.
"How we will get out of this economic crisis is something I am not
clear in my mind about. How we will emerge from this crisis I don't
know," said Juncker, who chairs monthly meetings of finance ministers
from the 16 countries using the euro.
"What we are experiencing is the end of Anglo-Saxon laissez faire,
which we paid far too much attention to. I believe we need more
regulation of the financial markets," he added.
Juncker said hundreds of billions of euros pledged in fiscal stimuli
by many European governments were sufficient for now.
"If by 2010 we see this is not enough, we will have to reconsider.
Now to simply pour more resources in would be premature," he said.
Juncker also said all 27 EU countries should have minimum wages,
though not necessarily at the same level.
He reiterated EU nations should end at some point huge fiscal outlays
aimed at boosting their economies as these were bound to fuel
inflation and burden future generations with higher taxes.
"We are in the process of getting into a spiral of debt ... Let's not
destroy what we have achieved in ten years. Inflation is a true
danger," he said. "We don't have the right to pay off the debt on the
shoulders of future generations."
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