Eurozone

Garganas calls for ECB to change its rules

The eurozone's policy framework suffered a further blow when a leading central banker called for a key change in the way interest rates are set. The criticism comes after the ECB was forced to defend the stability and growth pact. However this time the…

Bundesbank chief sees chance of further rates

Despite the ECB's recent rate cut, Ernst Welteke, the Bundesbank president, said Monday that the European Central Bank still had some leeway on interest rates, although monetary conditions were already favourable for eurozone growth.

Bank of England has doubts on eurozone convergence

With the appointment of a widely seen 'eurosceptic' as the new governor of the Bank of England, the current incumbent Sir Edward George has raised doubts about Britain's economic convergence with the eurozone but stressed the comments were based on …

Euro rates slashed to boost growth

Mounting fears over the sluggish eurozone economy have prompted the European Central Bank (ECB) to cut its key interest rate by a half-point, to 2.75%. There have been strong hints in the weeks since the last meeting from governing council members that…

Eurozone inflation edges higher

The eurozone inflation rate rose a further point to 2.3 percent it was revealed on Monday. The ECB is not considered to be worried about inflation at the moment with Ernst Welteke recently saying the bank expected inflation would head downwards.

IMF wants euro 'big 3' to tighten fiscal policy

US - The International Monetary Fund has weighed into the debate over the eurozone's stability and growth pact (SGP), arguing that the big three countries - Germany, France and Italy - should heed its message and make a concerted effort to tighten fiscal…

Report says single currency boosts trade

UK - The creation of the euro has boosted trade between eurozone countries significantly, according to new research, reinforcing the argument that the single currency has created a more genuine single market in Europe.

ECB report euro notes proving tough to counterfeit

GERMANY - The new euro bank note has proved bad news for forgers: less than a tenth of the previous number of counterfeit notes in the eurozone has been detected in the first six months in which the new currency has circulated.

Euro did cause price prices - Eurostat

GERMANY - The changeover to euro banknotes and coins might have added as much as 0.2 percentage points to eurozone inflation in the first half of this year, Eurostat, the European Union's statistical agency, said on Wednesday.

ECB holds rates steady

GERMANY - The European Central Bank's governing council decided on Thursday to leave the eurozone's benchmark interest rate unchanged at 3.25 per cent.

Does a floating currency buy flexibility?

RESEARCH - ECB WORKING PAPER by Marcel Fratzscher, June 2002"The Euro bloc, the Dollar bloc and the Yen bloc: how much monetary policy independence can exchange rate flexibility buy in an interdependent world?"(ECB Working Paper No. 154), (pdf 416 kB).

Eurozone economy to grow 2.5% at year-end

SPAIN - The rate of economic recovery in the eurozone is unclear but the economy should probably be growing at about 2.5 per cent at the end of this year, European Central Bank (ECB) vice-president Christian Noyer said on Sunday.

Outgoing chief warns on Greek competitiveness

GREECE - In the Greek central bank's annual report released on Monday the governor warned that his country was losing competitiveness in the eurozone in spite of high levels of investment driven by transfers from EU structural funds.

Punt passes away quietly

IRELAND - The Irish pound ceased to be legal tender from midnight on Saturday as Ireland became the second country within the eurozone - after the Netherlands - to ditch its old notes and coins.

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