Europe Economics Weekly What will be the ECB's next move? While President Draghi made clear last week that the ECB will loosen policy in June, he gave very few hints about just what action the Bank will take. Small cuts in the main refinancing and deposit... 12th May 2014 · 1 min read
Europe Economics Weekly Beefed-up stress tests will be no quick fix The euro-zone’s upcoming bank stress tests are likely to be more effective than the region’s earlier attempts. But the euro-zone financial system will heal only slowly, remaining a drag on the... 5th May 2014 · 1 min read
Europe Economics Weekly The unhelpful divergence between France and Germany Data released last week suggested that the euro-zone recovery gained more traction at the start of Q2. But there remains a worrying divergence between France and Germany which risks holding back the... 28th April 2014 · 1 min read
Europe Economics Weekly Negative rates are no silver bullet on their own A negative interest rate on banks' excess reserves at the ECB might have some effect on banks' behaviour and at least prove that the ECB is prepared to follow its dovish words with action. But it must... 21st April 2014 · 1 min read
Europe Economics Weekly Greek debt issue doesn't end the broader crisis Greece’s return to the bond markets last week might appear to mark the end of the euro-zone crisis which began when the true extent of the same country’s fiscal problems came to light in 2010. But... 14th April 2014 · 1 min read
Europe Economics Weekly ECB to follow words with actions before long Although President Draghi adopted a softer tone at last week’s interest rate press conference, the ECB decided to once again keep its powder dry. However, given the weak recovery and subdued inflation... 7th April 2014 · 1 min read
Europe Economics Weekly Lacklustre Q1 growth to keep the pressure on the ECB Survey data for March provided an insight into how the euro-zone fared over Q1. While they suggested that the recovery probably gained a little momentum in the first quarter, they remain consistent... 31st March 2014 · 1 min read
Europe Economics Weekly Rebalancing to weigh on euro-zone inflation further Recent data show that the euro-zone labour market is finally starting to strengthen and that labour costs are falling in the periphery relative to the core. But, while some economies are adjusting... 24th March 2014 · 1 min read
Europe Economics Weekly Industrial malaise could soon start to ease Although January’s euro-zone industrial figures made disappointing reading, the recent weakness of the sector partly reflects a plunge in energy production. Encouragingly, orders data paint a more... 17th March 2014 · 1 min read
Europe Economics Weekly Slack & euro could yet force the ECB's hand While last week’s decision by the ECB to leave policy on hold may be a signal that the euro-zone’s long monetary policy loosening cycle is finally over, the combination of the greater emphasis on the... 10th March 2014 · 1 min read
Europe Economics Weekly Stars still aligned for more ECB support Despite last week's stronger than expected euro-zone inflation figures, the combination of still very weak price pressures, the strong euro and recent falls in liquidity in the banking sector still... 3rd March 2014 · 1 min read
Europe Economics Weekly Slow euro-zone recovery leaves deflation threat lurking The euro-zone’s recovery appears to have continued at the beginning of 2014. But the recovery is struggling to gather enough pace to banish the deflationary menace facing the region. 24th February 2014 · 1 min read
Europe Economics Weekly GDP figures don't preclude the need for ECB action Q4’s euro-zone GDP figures confirmed that the currency union’s economic situation improved marginally at the end of last year, but the ECB will need to take further action to ensure that the recovery... 17th February 2014 · 1 min read
Europe Economics Weekly The ECB is too sanguine about monetary problems The euro-zone’s difficult monetary conditions will add to the disinflationary pressures in the region. Admittedly, Mario Draghi suggested last week that temporary factors such as the AQR were... 10th February 2014 · 1 min read
Europe Economics Weekly How will market volatility threaten the euro-zone? We doubt that the recent financial market sell-off in parts of the emerging world will be a catalyst for a renewed intensification of the euro-zone crisis. But the events underline the potential... 3rd February 2014 · 1 min read
Europe Economics Weekly Housing rebound to provide some support to recovery Data released over the last week point to a brightening outlook for euro-zone households, not least because the region’s housing market downturn may be easing. But given the state of households’... 27th January 2014 · 1 min read
