The permanent loss of national sovereignty over government budgets to Brussels is being demanded by Germany at a time when eurozone taxpayers - and primarily German taxpayers - look likely to be called on to foot the bill for solving the eurozone crisis. A new "banking union" currently being fleshed out will make the eurozone as a whole collectively responsible for any losses associated with future bank bailouts, irrespective of which country the troubled bank happens to be located in. There is however still uncertainty as to whether this sharing of risks will also apply to the rescue of Spain's banks that is currently being prepared, or whether the Spanish government will instead be required to guarantee the bailout.Meanwhile, expectations are growing that Greece will be given a further write-off or "haircut" of its debts, including possible relief on its debt repayments to the eurozone's bailout funds or the European Central Bank.
Mr Schaeuble ruled out any direct debt forgiveness on Sunday.
"You don't give a debtor who doesn't service your debt claims new money," he told Deutschlandfunkradio. "We would be prevented by law from doing any more."
He did however leave the door open to an arrangement under which new bailout loans could be used by Greece to buy back its private sector debts at what are currently cheap market prices. Greece has also been asking for two more years to meet the spending cuts demanded by international creditors. On Wednesday, the Greek Finance Minister Yannis Stournaras had claimed that a deadline extension had been agreed. But both Mr Draghi and Mr Schaeuble have denied this was the case, pointing out that the negotiations over the release of Greece's next tranche of bailout money were not yet complete.
Access Investments-Building Awareness - European Union-ROMANIA
Wednesday, October 31, 2012
The permanent loss of national sovereignty over government budgets to Brussels is being demanded by Germany at a time when eurozone taxpayers - and primarily German taxpayers - look likely to be called on to foot the bill for solving the eurozone crisis. A new "banking union" currently being fleshed out will make the eurozone as a whole collectively responsible for any losses associated with future bank bailouts, irrespective of which country the troubled bank happens to be located in. There is however still uncertainty as to whether this sharing of risks will also apply to the rescue of Spain's banks that is currently being prepared, or whether the Spanish government will instead be required to guarantee the bailout.Meanwhile, expectations are growing that Greece will be given a further write-off or "haircut" of its debts, including possible relief on its debt repayments to the eurozone's bailout funds or the European Central Bank.
Mr Schaeuble ruled out any direct debt forgiveness on Sunday.
"You don't give a debtor who doesn't service your debt claims new money," he told Deutschlandfunkradio. "We would be prevented by law from doing any more."
He did however leave the door open to an arrangement under which new bailout loans could be used by Greece to buy back its private sector debts at what are currently cheap market prices. Greece has also been asking for two more years to meet the spending cuts demanded by international creditors. On Wednesday, the Greek Finance Minister Yannis Stournaras had claimed that a deadline extension had been agreed. But both Mr Draghi and Mr Schaeuble have denied this was the case, pointing out that the negotiations over the release of Greece's next tranche of bailout money were not yet complete.
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The unemployment rate creeped up from a revised 11.5pc during August, according to data from EU statistics agency Eurostat, leaving 18.5m hunting jobs.
Eurostat estimates that the number of men and women out of work across the 27 EU states rose by 169,000 from August to 25.8m. The eurozone accounted for the bulk of that increase, climbing 146,000 over the same period.
The lowest rates in the eurozone were seen in Austria (4.4pc) and Luxembourg (5.2pc), while the highest remained in stricken Spain (25.8pc) and Greece (25.1pc, most recent available figure from July).
Across the EU 20 member states saw rising unemployment during the month, and only seven managed to buck the trend.
Andrea Broughton, principal research fellow at the Institute for Employment Studies said: “Given the ongoing financial difficulties of the European Union and the likelihood of continuing job losses in the public sector as austerity measures begin to bite, overall unemployment levels and youth unemployment in particular are likely to carry on rising for the foreseeable future.”
It's not austerity - i Then why are the countries not practicing austerity doing so well, and those that are imposing it are doing so badly? Is evidence right in front of your face so very hard to see and understand?
It's actually living within your means WHAT does this mean?????? Is having high unemployment rates and mass poverty whilst food gets destroyed and houses go empty and the very wealthy stash trillions in off shore accounts, is THIS "living within your means"?
and how anybody could argue against that is beyond my comprehension. A LOT is beyond your comprehension.
But no doubt the "money grows on trees" You have no idea what a fiat currency is or how it works. ZERO understanding of the subject. In a fiat currency, money is created (and destroyed) at will, yes, EXACTLY. But it needs to be created and regulated for the common good, not the rich.
or the "tax the rich" guardanistas will tell me I am wrong.Yes because you much prefer paying more tax than the obscenely wealthy and love their control of government, destruction of democracy, and tyranny. Good for you, huzzah.
Greek debt as a % of GDP projected to go up to 179% next year up from 110% 3 years ago.
Thanks for the help Troika. It's working and the debt is now much more sustainable than it was.. The economy showing fabulous signs of no growth whatsoever with businesses closing at really fun rates of thousands per day. Best of all the unemployment figures are rocketing. Boy are you guys smart!
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