Eurozone

'Absurd criteria for new EU members'

An article in the Financial Times says that, fortunately, such a disastrous scenario as a deflationary spiral in the eurozone is unlikely. But that is not true of the problems that low or negative inflation within the eurozone could pose for the…

Germany's Schroder calls on ECB to reduce rates

German chancellor Gerhard Schroder has questioned the ECB as to "whether they have done enough to stimulate growth", according to a report in the Financial Times. He told Pedro Solbes, EU monetary affairs commissioner, on Tuesday that Germany would…

ECBs Solans says uncertainties cloud rates outlook

In an interview with the Financial Times, Eugenio Domingo Solans of the ECB said the current level of interest rates in the eurozone was favourable for a recovery. But the situation would be reassessed at the next meeting as the outlook was still clouded…

Bundesbank dampens rate cut speculation

Bundesbank chief Ernst Welteke poured cold water on further ECB rate cut talk on Monday 16 June, according to AFP, suggesting it was now up to governments and politicians to get their economies in order.

Duisenberg on structural reform and mon policy

In a speech on 'Structural reform and its implications for monetary policy' Wim Duisenberg of the European Central Bank said labour market reforms are urgently needed if euro zone economic growth is to recover strongly as some countries are hampered by…

ECB's Issing on eurozone growth

In testimony to the European Parliament Otmar Issing of the ECB said eurozone economic growth is expected to be only moderate this year, and inflation is forecast to fall below 2%, although developments continue to be overshadowed by the war in Iraq. He…

ECB plans for reform may run into problems

Plans to reform the European Central Bank, including cutting the voting power of smaller European Union member states, are expected to run into trouble this week. Some Finnish MPs claim Paavo Lipponen, their prime minister, assured them that the Bank of…

ECB concerned by eurozone growth prospects

The European Central Bank on Thursday fuelled speculation about a possible interest rate cut by highlighting concerns about growth across the eurozone area, although it reiterated its stance that its current monetary policy is "appropriate".

A funny way to manage Europe's money

ARTICLE - This article looks at the potential for enlargement of the eurozone and its impact on the ECB's governing council. The author sees problems ahead saying that today's 18 member council is already too large and proposals for rotational voting…

ECB must act now

ARTICLE - The article says the ECB must continue to ease interest rates soon to further boost the flagging eurozone economy as the possibility of deflation in Germany is a greater danger than inflation.

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