There are fears that a mass repatriation of the Japanese yen could destablise the global economy. The world's richest nations have rallied behind Japan in a bid to calm markets over the devastating earthquake and its aftermath. The G7 group, whose members include the United States and the UK, joined the Bank of Japan in stepping into the currency markets to curb the soaring yen. Recognising the damage that a rising national currency could do to an export-dependent economy, the Bank of England, Germany's Bundesbank, the Bank of France and the European Central Bank joined the BoJ on Friday morning in the first co-ordinated intervention by the G7 since the launch of the euro a decade ago. The US Federal Reserve is also expected to participate. The Japanese authorities blamed speculators for the dramatic surge in the yen since the earthquake struck a week ago. Dubbing them "sneaky thieves", Japanese deputy finance minister Fumihiko Igarashi said in an interview with Reuters: "G7 countries agreed that if we caved in to such speculators that took advantage of people's misfortunes, the Japanese economy would be ruined and the whole world economy would be harmed.
Access Investments-Building Awareness - European Union-ROMANIA
Saturday, March 19, 2011
There are fears that a mass repatriation of the Japanese yen could destablise the global economy. The world's richest nations have rallied behind Japan in a bid to calm markets over the devastating earthquake and its aftermath. The G7 group, whose members include the United States and the UK, joined the Bank of Japan in stepping into the currency markets to curb the soaring yen. Recognising the damage that a rising national currency could do to an export-dependent economy, the Bank of England, Germany's Bundesbank, the Bank of France and the European Central Bank joined the BoJ on Friday morning in the first co-ordinated intervention by the G7 since the launch of the euro a decade ago. The US Federal Reserve is also expected to participate. The Japanese authorities blamed speculators for the dramatic surge in the yen since the earthquake struck a week ago. Dubbing them "sneaky thieves", Japanese deputy finance minister Fumihiko Igarashi said in an interview with Reuters: "G7 countries agreed that if we caved in to such speculators that took advantage of people's misfortunes, the Japanese economy would be ruined and the whole world economy would be harmed.
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Pact for the Euro
The future Euro rescue fund needs to respect the Community method and make sure the European Commission is involved in setting-up and implementing the Euro Stability Mechanism (ESM), MEPs from the Constitutional Affairs Committee demand in the European Parliament's draft Opinion on the Treaty change necessary to establish the fund. Parliament needs to adopt the Report, drafted by EPP Group Member Elmar Brok, before the European Council can formally approve the change of Article 136 of the Treaty on the functioning of the EU at its meeting the following day. Vote in plenary on Wednesday followed by a debate with the Council and Commission on agenda topics of the European Council.
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