Monthly Archives: December 2011

Europe’s deal – and why it may not be enough

December 2, 2011 9:15 pm by Gideon Rachman

Stock markets are soaring, apparently in anticipation that Europe may finally strike a deal that “saves the euro”. But here in Washington, they don’t seem so convinced.

President Obama met the leaders of the European Commission and the European Council earlier this week (Barroso and Van Rompuy, in case you have forgotten.) They outlined to him the measures that they expect the EU to take at the December 9th summit. The Commission have also been briefing the IMF. But neither the Obama administation nor the IMF seem to be exactly jumping for joy at what they are hearing from Brussels. Read more

Posted in Europe, Financial crisis | Permalink

FT podcast: World Weekly

December 2, 2011 12:00 am by FT

World Weekly climate change special: the Durban summit

In a World Weekly special on climate change, guest host Clive Cookson, science editor, is joined by Pilita Clark, environment correspondent, and Chris Giles, economics editor, to discuss how the conflict between the industrialised and emerging economies is shaping the discussions at the climate change summit in South Africa. Read more

Posted in Africa, Development, World affairs | Permalink

The return of global economic co-operation

December 1, 2011 12:49 pm by Gideon Rachman

The political and economic debate in Washington is normally reliably inward-looking – particularly during an election year. But, after a couple of days here, I’ve been struck by the intense interest in (and anxiety about) the European debt crisis. Yesterday, the New York Times and the Washington Post ran very similar lead editorials, imploring Germany to act.

By the end of the day, action had indeed been taken. But it was led by the Federal Reserve in the US, in co-ordination with the central banks of the euro-zone, Britain, Japan, Switzerland and Canada. Even China joined the party, by announcing the first cut in its reserve rates for almost three years. Read more

Posted in Europe, Global economy | Permalink

Eurozone crisis: live blog

December 1, 2011 8:02 am by FT

Photo: Jean-Paul Pelissier/Reuters

Welcome back to the FT’s live coverage of the eurozone debt crisis and its global fallout. By John Aglionby, Tom Burgis and Esther Bintliff on the news desk in London with contributions from correspondents around the world.

Pressure is once again mounting on eurozone leaders to find a convincing solution to the sovereign debt crisis. Today:

Mario Draghi, the head of the European Central Bank made a key speech to the European Parliament, hinting at greater ECB action if governments moved towards a “fiscal compact”

France and Spain held bond auctions
French president Nicolas Sarkozy addressed the nation on his plan to resolve the crisis – he sided with Angela Merkel in calling for treaty change, said he was convinced the ECB would act “when faced with the risk of deflation that threatens Europe”, and called for greater fiscal integration
The Bank of England issued its six-monthly financial stability report. Sir Mervyn King, governor, said the eurozone debt crisis is triggering a spiral that is characteristic of nothing short of a crisis to the entire financial system
The world’s biggest economies reported key manufacturing data
Christine Lagarde said the G20 would commit the necessary resources for the IMF to play its “systemic role” if circumstances required (see our 19.44 update)
Brazil’s finance minister Guido Mantega said Brazil was willing to contribute funds to the IMF to help alleviate the eurozone crisis, noting: “This time, the IMF did not come here bringing money as in the past… This time it came to ask Brazil to lend it money and I prefer to be a creditor than a debtor.”

22.32: Tony Barber, the FT’s Europe editor in London, has been analysing the landmark speech by French president Nicolas Sarkozy and offers these insights: Read more