European Central Bank President Mario Draghi Announces Interest Rate Decision

The European Central Bank’s governing council has kept interest rates on hold and once again reaffirmed plans to maintain its quantitative easing programme at €80 billion to March 2017 or beyond if needed.

President Mario Draghi SAYS that the next meeting on 8 December “will define the coming months” as he warns the eurozone is subject to “downside risks”. He says there has been no discussion about extending QE beyond next March but that “an abrupt end” to quantitative easing is “unlikely”. He says the governing council had discussed “various options in case we are confronted with a shortage of purchasable bonds in some jurisdictions”

Key points

  • Interest rates are kept on hold in October

  • The ECB’s asset purchase target is unchanged at €80bn per month

  • Draghi signals next meeting in December will be key

  • Draghi says no discussion about extending QE beyond next March

By Mehreen Khan and Gavin Jackson


Barack Obama said this week that he would like to see Matteo Renzi “hang around” as Italian prime minister even if he loses a pivotal constitutional reform referendum in December. Such a scenario would represent a reversal of Mr Renzi’s vow to leave office if he is defeated, but may be reassuring for markets and investors looking for political stability in the eurozone’s third-largest economy. But it might not be that simple. So what are Mr Renzi’s options?

Rexit Read more

Theresa May’s Brexit vision

At the UK Conservative party conference this week we got a clearer sense of Theresa May’s Brexit vision, with the prime minister announcing that the process for leaving the bloc will be formally set in motion early next year. So what are the implications at this stage for Britain – and for Europe? Gideon Rachman puts the question to Daniel Dombey, the FT’s Brexit editor, and Brussels bureau chief Alex Barker.

By Gideon Rachman

Later this week, EU leaders will meet in Bratislava — minus one country. The Slovakia summit will be the first to take place without the UK. But Britain will loom large in discussions, as Europe grapples with Brexit.

By Gideon Rachman

Journalism is sometimes said to be the first draft of history. This article is the first draft of a history exam for students graduating in 2066. I have tried to imagine the questions future historians will ask about today’s political events.

Europe’s fraying economic ties with America

Economic ties between Europe and the US took a knock this week when the EU slapped huge back taxes on Apple and several European politicians declared transatlantic trade talks to be effectively dead. Gideon Rachman asks Tony Barber, the FT’s Europe editor, and Shawn Donnan, the FT’s world trade editor, what hopes remain for a successful conclusion to the TTIP talks. Read more

Theresa May, the UK prime minister, says that “Brexit means Brexit”. But when will it actually happen?

The whole question of the timing of Britain’s departure from the EU is now open to question. Britain has still not triggered Article 50, which gives formal notification that the UK intends to leave and fires the starting gun for negotiations. The Sunday Times claimed recently that Article 50 may not be triggered until late next year because of a mixture of administrative chaos in the UK and political uncertainty caused by elections in France and Germany in 2017.

Given that it will then probably take a minimum of two years to negotiate the divorce, that would mean that Britain’s exit from the EU would not happen until the end of 2019. Over at the Independent, however, Andrew Grice makes the case that delaying Brexit this long is not politically feasibleRead more

Turkish President Tayyip Erdogan delivers a speech to his supporters in Istanbul

Live coverage of the aftermath of an attempted military coup in Turkey, where 3000 members of the military and security forces have been arrested and the judiciary has been purged.

Key developments

  • Erdogan demands “head” of suspected coup plotter Gulen from US; White House says it has not received extradition request
  • Gulen tells FT coup may have been orchestrated by Erdogan
  • PM hails Turkey now back in “complete” control of government
  • Nearly 3000 members of the military arrested; 2750 judges purged, senior judges arrested
  • Plotters who fled to Greece will be returned to Turkey – foreign minister
  • Total death count hits 265, with 161 civilians killed and 1440 wounded

    “Now it’s our turn!” So said Geert Wilders (above), leader of the far-right PVV party in the Netherlands, after the UK electorate voted in last week’s referendum to leave the EU.

    In practice, there is next to no chance of a Dutch referendum on EU membership — certainly not under Dutch law as it stands. However, to say this is not to underestimate the serious political challenges that lie ahead in the Netherlands. Read more

    Over the years, I’ve followed stories of English football hooliganism around the world with a certain grim fascination. Last night, unfortunately, I got to witness it first hand – at the England-Russia game at Euro 2016 in Marseilles.

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    By Gideon Rachman

    The way the press treats political leaders marks a crucial dividing line between free and authoritarian countries. In an authoritarian state, presidents and prime ministers demand and receive reverential treatment. In democratic countries, political leaders know that they will be subject to satire — and vicious and sometimes unfair criticism.

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    Last week’s attacks in the Belgian capital have raised fresh questions about the extent of Isis operations in Europe and whether security services and law enforcement agencies are capable of containing the threat. Ben Hall discusses the attacks and their ramifications with Peter Spiegel, the FT’s Brussels bureau chief and Sam Jones. defence and security editor.

    By Gideon Rachman
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    By Gideon Rachman
    In the 18th and 19th centuries, Europeans populated the world. Now the world is populating Europe. Beyond the furore about the impact of the 1m-plus refugees who arrived in Germany in 2015 lie big demographic trends. The current migration crisis is driven by wars in the Middle East. But there are also larger forces at play that will ensure immigration into Europe remains a vexed issue long after the war in Syria is over.

    Paris atrocity exposes European security shortcomings
    The Paris terror attacks have exposed Europe’s security and intelligence shortcomings and fulfilled officials’ worst fears about blow back from Syria’s bloody civil war. Ben Hall discusses the attacks and their implications with Sam Jones, defence and security editor, and Roula Khalaf, foreign editor.

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    At the beginning of this year, Angela Merkel had a good claim to be the most successful politician in the world. The German chancellor had won three successive election victories. She was the dominant political figure in Europe and hugely popular at home.

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    I was at the Greek archaeological site of Delphi last weekend, attending a conference on Europe’s future, when the news arrived that Jeremy Corbyn, a 66-year-old leftwinger, had been elected as leader of Britain’s opposition Labour Party. I climbed up the hill and asked the Oracle for some predictions.

    TB: Oh, Oracle, will the world see Corbyn’s triumph as irrelevant? After all, Labour’s never going to win a general election under him, so he will never be prime minister.

    ORACLE: Not irrelevant, my friend, but illustrative. The world will see Corbyn’s success as one more that Britain, like a snail, is retreating from the international stage and withdrawing into itself. Read more

    By Gideon Rachman
    There is a comforting cliché in Brussels that the EU needs crises in order to progress. But the current cocktail of problems facing Europe — refugees, the euro and the danger that Britain might leave the union — look far more likely to overwhelm the EU than to strengthen it.