Bank of England Rejects All Offers, Quantitative Easing Fails to Lower Yields in UK
The Bank of England threw a Quantitative Easing Party today, but no one showed up with acceptable bids
Barroso lashes out at markets in interview with Germany's Bild
Oct 10, 2011, 6:39 GMT
Berlin - EU Commission President Jose Manuel Barroso lashed out at financial markets for 'sowing panic' in the ongoing crisis over eurozone sovereign debt, in an interview published on Monday by Germany's mass-circulation Bild newspaper.
The head of the European Union's executive body simultaneously blamed other eurozone countries for putting the commission under 'enormous political pressure' to accept Greece into the single-currency block at the start of 2001, a year after its inception, but in time for the introduction of notes and coins a year later.
In a dig at Germany and France, Barroso noted that they had prevented the commission from applying sanctions when these two leading EU nations themselves broke the rules of the Stability and Growth Pact agreed at the launch of the euro by exceeding the deficit limits in 2003-06.
Financial markets were 'not infallible,' Barroso said, repeating a theme he has raised frequently in recent months.
'Previously the experts and the financial markets rather underestimated the debt problems. Now they sometimes exaggerate the risks and sow panic,' he told Bild in remarks published in German.
On Greece's membership of the 17-member currency bloc, Barroso noted that the commission had made clear in a 1998 report that Greece had not fulfilled the criteria laid down for membership.
'But there was a political wish to accept Greece. There was enormous political pressure from the member countries for (Greek) accession.'
Bild, with a circulation of almost 3 million, has been in the forefront of a campaign to ensure that Germany, the EU's economic powerhouse, is not burdened with the costs of a bailout for Greece and other embattled eurozone economies like Ireland, Portugal, Spain and even Italy.
2nd Part of the PICTURE interviews with European Commission President Barroso, enter your word of honor that we Germans lose any money?
European leaders pushed back a debt- crisis summit amid opposition to Germany’s drive for deeper- than-planned Greek bond writedowns that Luxembourg’s Jean-Claude Juncker says may exceed 60 percent.
When asked on Austrian television late yesterday to comment on speculation investors may lose between 50 percent and 60 percent of the value of their holdings, Luxembourg’s prime minister said “we’re talking about even more.” He didn’t comment further.
Germany is pushing behind the scenes for a "hard" default in Greece with losses of up to 60pc for banks and pension funds, risking a chain-reaction across southern Europe unless credible defences are established first
FRANKFURT (Reuters) - The sovereign debt crisis has become systemic and risks to the economy are increasing swiftly, European Systemic Risk Board Chairman Jean-Claude Trichet said on Tuesday.
Trichet, who heads the European Central Bank as well as the continent's super-watchdog on financial stability, said the euro zone bailout fund should be made as flexible as possible, but without involving the ECB in leveraging it.
"The crisis is systemic and must be tackled decisively," Trichet told the European Parliament's Committee on Economic and Monetary Affairs.
"The high interconnectedness in the EU financial system has led to a rapidly rising risk of significant contagion. It threatens financial stability in the EU as a whole and adversely impacts the real economy in Europe and beyond."
Trichet called for governments and European authorities to act together to solve the crisis, adding that delay would be disastrous.
"It is a matter of urgency that all authorities act in unison, with total commitment to safeguarding financial stability," he said.
"The government is set to fall, but the bailout fund will eventually be approved," Grigorij Meseznikov, the head of the Public Affairs Institute, a think-tank in Bratislava, said by phone after Fico’s comments. "It could take a few days, though."
BRUSSELS — The EU warned Tuesday that the eurozone requires permanent tough austerity measures if it is to cope with public debt set to crash through the 100-percent-of-GDP barrier and keep rising for many years.
With an ageing population piling up social security and pension costs, the European Commission says a radical long-term correction is required to put public debt throughout the 17-nation euro currency area on a sustainable path.
"The deterioration in the public finances of the euro area since the onset of the economic and financial crisis comes on top of already high starting levels of debt," the Commission said in its quarterly report on the euro area.
The euro crisis is escalating again, with growing concern that a looming Greek insolvency could trigger a new banking crisis. Furthermore, apparent divisions between France and Germany on the recapitalization of banks have unsettled investors and there are widespread concerns that Slovakia will block the expansion of the euro bailout fund in a parliamentary vote due later on Tuesday.
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| Tue, 11 Oct 2011 |
What excellent news. We've always had a soft spot for "Alexander the Big" as he was fondly known locally in Northamptonshire. His mother was an active local conservative and a staunch supporter of Margaret Thatcher from the days she beat Edward Heath to the leadership. Also remember Hesketh did much for British motor racing, running his team with James Hunt, having previously tried to revive the British motor cycle industry.
Dear XXXXXPYou wrote to me on June10 to express your delight over the defection of UKIP MEP Bannerman to your party and I replied that these things happen from time to time and I was able to give you an example- Michael Corby`s decision to leave you and join the UKIP.In case you have not heard the news, I suggest you click on to the site below: Lord Hesketh, another prominent Conservative has "seen the light" as you put it in your letter to me, . and followed Stuart Wheeler who is UKIP`s treasurer..I`m sure we shall quit the European Union one day, only a matter of time. We cannot be "in Europe but not ruled by Europe". Pity you and your leader can`t see it.Yours sincerely,XXXXEPS You used to be a eurosceptic, I remember you saying to me "My heart is with you" and later "I`m a eurosceptic like you, I agree with you 90%." What happened?
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Should Christians Support Cameron?
I will respect the Office which he holds and I will pray for him, BUT that is it. Today I have begun to see what I can do to make sure that he is a one-term Prime Minister!
Why am I doing this ? It is because:
- I do not share Cameron's openly Marxist vision for Britain;
- I do not share his belief in the EU - I believe we should leave it today;- I do not share his total lack of moral and patriotic action and fervour;
- I do not share his profligate approach with MY Foreign Aid, to nations richer than us;
- I do not share his view that Britain is still a strong nation under his leadership;
- I do not share his view that the military should be reduced by 25%;- I do not share his view that "Britain is now a Multi-Cultural Nation";
- I do not share his view of amnesty to all immigrant criminals;- I do not share his view of giving more to immigrants, than our own British Citizens;
- I do not share his views on allowing Sharia Law to be introduced to our nation;
- I do not share his views on Political Correctness;
- I do not share his tolerance of our City Finance and Taxes going to Frankfurt;- I do not share his beliefs on how to manage the NHS healthcare system in Britain.
- I do not share his Strategy views of the Middle East; and
- I certainly do not share his plans to sit down with terrorist regimes such as Iran.Bottom line: my Britain is vastly different from Cameron's - and I have a higher obligation to my Country and my GOD to do what is Right !The Coalition have not moved towards patriotism at all, in any of their beliefs and their philosophies and they never compromise their personal beliefs for the betterment of our nation!They have portrayed my Britain as a land where everything is tolerated, except being intolerant! True freedom of protest is no longer allowed in our once free nation.They - and the Judiciary, have mocked and attacked the very core values so important They have mocked and attacked the very core values so important to the founding and growth of our Country! Our Magna Carta Constitution has been totally ignored and our legally inherited Rights signed away to foreign rule - without my permission, without any request or vote by me - or by my leave!Last, but not least, Cameron has made every effort to remove the name of GOD and Jesus Christ from our Christian Society, yet he actually encourages the growth of Islam!Unite behind Cameron? Never!I am sure many of you who read this think that I am going overboard, but I refuse to retreat one more inch in favour of those whom I believe are the embodiment of Evil!
Margaret Thatcher made many mistakes during her Leadership and I am not sure how history will judge her. However, I do believe that she weighed her decisions in the light of the long established Judeo-Christian principles of our Christian Ancestors!
The majority rules in Britain and I will honour that concept; however, I will fight with all my power, to be a voice in opposition to Cameron and his "goals for Britain .."I am going to be a thorn in the side of those who, if left unchecked, will destroy our Nation! Any more compromise - is only more defeat!
I pray that before the next election, many who sit on the sidelines, will wake up and not allow the Socialist-Marxist anti-GOD crowd to change any more of what has been good in my Britain for the past 800 years!GOD bless you and GOD bless our Country!
EuropeSituation in Slovakia still uncertain ahead of today’s EFSF vote; EU summit delayed over disagreements on bank recapitalisation; In a speech to the House of Commons yesterday, Chancellor George Osborne again suggested that the eurozone should move towards fiscal union. When questioned over what type of fiscal union he envisaged, Osborne hinted that it may involve some form of Eurobond and eurozone members having vetoes over each other’s national budgets. In an interview with Bild, President of the European Commission Jose Manuel Barroso has encouraged the UK to participate in any future eurozone bailouts, saying he wishes “that all countries that are financially able to do so show support," since a Greek default would negatively impact all EU countries. Il Corriere della Sera reports that yesterday Italian Foreign Minister Franco Frattini criticised the Franco-German bilateral meetings on the eurozone crisis, saying, “We think that a global issue cannot be solved by bilateral axes…Frankly, we didn’t quite get the gist of [Sunday’s] meeting – there was no declared agenda, we don’t even know if there was a concrete agenda.” Meanwhile, ECB bond purchases dropped to €2.3bn last week, while overnight deposits and borrowing from the overnight lending facility at the ECB, both seen as measures of market stress, reached their highest levels for the past year. Raoul Ruparel: ECB’s independence is key to euro survival In an op-ed in the FT, former Foreign Secretary Lord Owen and co-chairman of the OMFIF think-tank David Marsh argue, “Given the great uncertainties facing the eurozone, it is time for Britain, Poland, Sweden and the other EMU non-adherents to formalise their position by establishing the ‘Non-Eurogroup’ (NEG) as a central, constructive element of the EU…Setting up the NEG would establish rights and responsibilities for non-eurozone members, ending the long-held European position that non-membership of the euro represents a form of second-class EU citizenship. It would protect these countries from political and economic discrimination. It would allow a formal mechanism for countries to move between the two groups, calling a halt to the absurd interpretation of many eurozone governments that if a country such as Greece were to leave the euro, it would have to quit the EU altogether.” Speaking to Die Welt, Chairman of the CDU/CSU parliamentary group Volker Kauder argued that "Europe must be a Europe of parliaments… Parliaments must always have the final say in decisions with budgetary implications. This is what we have already laid down with the EFSF bailout mechanism and there is no turning back from this”. He added that if there are to be any changes to the EU Treaties, the Bundestag and the other national parliaments should be involved in shaping any reforms from the very beginning. German bankers lobby Berlin not to recapitalise them The European Parliament’s Budget Committee is today expected to vote in favour of a 5.23% increase in payments for the EU’s 2012 annual budget. The full Parliament will then vote on its position at a 26 October plenary session. FAZ’s Poland correspondent Konrad Schuller describes the result of the Polish elections on Sunday, in which Donald Tusk’s Civic Platform was elected to serve a second term, as an example of the success of EU enlargement towards the east. Handelsblatt reports that the German Industry Federation has criticised the Commission’s proposal for an optional system of common contract law for all EU member states, stating that "such an instrument is unnecessary and seems to have been considered from a political rather than legal perspective". Elsevier reports that Greece will not after all accept 400 tanks free of charge from the US, as the Greek government deemed the transport costs to be prohibitively expensive. WorldThe creation of the opposition Syrian National Council has been welcomed by EU leaders. Although they stopped short of recognising the SNC officially, they stated that the creation of a unified opposition to President Assad was a positive step. UKLord Hesketh, a former Conservative Party treasurer, has defected to UKIP, citing David Cameron’s decision to rule out a referendum on the Lisbon Treaty. New on the Open Europe BlogThe Real Face(s) Of Greece's Tax Evasion The Central European Tea Party Keeping the ECB Independent is Key to the Euro’s Survival |
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