Transition of Latvia to euro from 1 January 2014 allows us today to remember how this transition proceeded in the neighbouring Estonia three years ago and the outcomes by the end of the first year of living in eurozone.
There seems to be pessimism in the air regarding the economic prospects of the West and by extension the world. In its recent report, the Organization for Economic Co-operation and Development (OECD) revised downward its estimates of growth for many countries. It lowered the overall growth rate forecast of the Euro Zone for 2013 and 2014 each by 0.5 per cent. For the entire OECD, the forecast has been lowered by 0.6 per cent for 2013 and 0.2 per cent for 2014.
As far as Germany is concerned, the drama of the euro crisis is over. The subject was barely discussed in the country’s recent election campaign. Chancellor Angela Merkel did what was necessary to ensure the euro’s survival, and she did so at the least possible cost to Germany – a feat that earned her the support of pro-European Germans as well as those who trust her to protect German interests. Not surprisingly, she won re-election resoundingly.
The debate between advocates of austerity and supporters of stimulus still rages across Europe. Our experts assess whether backing for German Chancellor Angela Merkel’s economic policies—the “Merkel way”—is starting to wane.
The Government has decided that Lithuania must have the euro by 2015, whatever the cost. Finance Minister Rimantas Šadžius, though, admits that ordinary people are a little suspicious of a currency switch – remember as they do the last monetary reforms in the country that went less than smoothly.
The International Monetary Fund (IMF) on Thursday warned central banks to be alert to the potential financial risks of super-loose monetary policy adopted to cope with the financial crisis.
In China, held the 12th session of the Boao Forum for Asia (BFA).
U.S. Treasury Secretary Jacob Lew is telling Europe it needs to adopt new policies to boost economic growth, but his advice has been met coolly in Germany.
There were messy and embarrassing mistakes along the way. But, in the end, German Chancellor Angela Merkel got what she wanted: an end to the endemic system of money laundering and corruption in Cyprus.
Russia has a few interests at stake in the European Union bailout for Cyprus. The first and most obvious is that Russian citizens stand to lose billions of dollars worth of savings in Cyprus’s banking sector, which serves as a low-tax haven for Russian oligarchs. Those oligarchs, remember, wield outsize political power within Russia. The second is that Cyprus is a political client state of Moscow’s, a helpful little ally on such matters as sending arms to Syria. The third is symbolic, and doesn’t actually have that much to do with Cyprus itself, but with Russia’s standing in Europe.