The German constitutional debate about the legality of the ECB’s OMT (Outright Monetary Transactions) program continues with the head of the Bundesbank arguing that Germany risks significant losses and grave damage to its credibility and ultimately it is the German tax payer who carries the risk.
The lost decade of Europe is looming, writes Jack Ewing. With all eurozone countries minus Germany hurtling towards a recession, what does this mean for the millions of residents still struggling to find work?
Too many political leaders around the world have very little understanding of how the banking system works, writes Robert Gottliebsen, of Business Spectator.
Central bankers and politicians, including Wayne Swan, are trying to spin low interest rates as a good thing in an effort to calm the markets. But the reality is the European Monetary Union doesn't work.
As the principal creditor to the eurozone, Germany is seriously exposed to the European monetary system, making a German exit from the eurozone perhaps more likely than a Greek or Spanish exit.
Crikey media wrap: German Chancellor Angela Merkel and French President Nicolas Sarkozy unveiled their joint plan for strict debt discipline guidelines to help save the troubled currency.
Financial markets succumbed to a fresh bout of pessimism overnight, as investors queried the ability of the new Italian and Greek leaders to tackle the massive economic challenges they confront.
Tensions between Paris and Berlin are set to flare, as fears grow that the flames of the debt crisis now engulfing Italy could soon spread to Belgium and France.
Europe’s debt crisis continued to roil markets overnight, with Italian bond yields surging through the critical 7% level overnight, as European officials mulled over the possibility of a radical reshaping of the eurozone.
Italian Prime Minister Silvio Berlusconi was fighting for his political survival overnight, as Italy’s borrowing costs reached new highs.