euro

Speaking on television earlier this year, Manuel Valls, the French prime minister, declared that his government’s budget would not be written to “satisfy Brussels”, adding – “We are a great nation . . . France is a sovereign country.”

By Gideon Rachman
“Whatever it takes.” Mario Draghi’s declaration that he would save the euro could well go down as the most effective three-word statement by a Roman since Julius Caesar’s veni, vidi, vici.

  • The United Arab Emirates is hoping to deliver public services using drones.
  • Mitochondrial replacement was developed in the UK, but it might be lost to the US because of government procrastination.
  • Wondering what will happen now that the Swiss have backed immigration quotas? Take a look at our Q&A on the topic.
  • Gideon Rachman looks at what it means now that two German institutions have registered objections to the policies underpinning the euro. He has also mulled over whether the EU should take punitive action over the Swiss vote – prompting quite some debate.
  • Australian authorities have published a graphic novel, seemingly aimed at deterring asylum seekers.
  • The New York Times looks at the conflict faced by Palestinians who opt to take jobs in Israeli companies in the occupied West Bank.
  • Some Russians are mourning the pre-Putin, pre-Olympic Sochi of their childhoods.

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Martin Wolf

For a third year I attended a private dinner at which we laid notional wagers on the future.

This time the main question was not the future of the euro. Apparently, the future of the euro is now regarded as so assured that it is not even worth betting against it. I suspect this is too complacent. We did bet last year on Brexit (British exit from the EU), but that was by 2018. So this issue was not raised again this year.

Here are this year’s, rather less significant, bets, with the mean probabilities out of 100 per cent of the participants and my own probabilities below. Read more

Tony Barber

Europe’s recovery proceeds apace – at least on bond markets. When it comes to public opinion, it’s a different story.

A Gallup poll, published on Wednesday, showed what a devastating impact the eurozone’s crisis has had on popular attitudes to the European Union. Nor is the collapse of confidence in the EU limited purely to countries that have been required to slash wages and benefits in return for international financial aid. Read more

Gideon Rachman

Mario Monti exits a voting booth on February 24 (AFP/Getty)

Mario Monti exits a voting booth on February 24 (AFP/Getty)

Paul Krugman has got in early to comment on the political demise of Mario Monti – who now seems certain to trail in fourth in the Italian elections. According to Krugman, Monti’s reputation for wisdom is wildly overblown. On the contrary, he more or less deserves his fate because he was “in effect, the proconsul installed by Germany.”

Worse, according to Krugman, Monti’s policies did not even work. As in the rest of southern Europe, the economy has shrunk and so debt-to-GDP ratios have risen. There was only one “piece of good news” in the Monti era – that “bond markets have calmed down.” However, Monti cannot claim the credit even for this, because it is “largely thanks to the stated willingness of the ECB to step in and buy government debt when necessary.”

As ever, with Krugman, the argument is forcefully made. But it misses out a crucial stage in the argument and therefore unfairly denigrates the role of Monti in stabilising the Italian economy. Remember, when Monti came to power, the steady rise in the interest rates that Italy was having to pay to finance its debt was eating up more and more of the Italian budget. There was a real prospect that Italy might simply be unable to finance itself through the bond markets – and that might have sparked a terminal crisis in the euroRead more

Gideon Rachman

GERARD CERLES/AFP/Getty Images

Gerard Cerles/AFP/Getty Images

The latest Pew poll on Europe has been given the provocative headline “European unity on the rocks”. And the survey results do indeed show that in six of eight countries surveyed, majorities believe that European integration has damaged their economies.

This is now true even of Spain (by a narrow majority) – and of France, Italy and Britain by large majorities. The only two places surveyed where majorities still think the EU has been good for prosperity are (predictably), Germany and Poland. Read more

Alan Beattie

The euro has fallen to a 16-month low below $1.27 – run, run for your lives! Or recognise that it’s still around the trade-weighted average for the past decade and only slightly weaker in real terms than when it launched, that a weaker currency is just what a stricken economy needs and that there isn’t much sign that the fall is disorderly and hence generally hitting confidence in eurozone assets. (The eurozone authorities are doing that.) Read more

Esther Bintliff


As fears of a possible Greek default continue to sway financial markets, time is running short for policymakers to agree a solution to the eurozone crisis. The FT will be running live coverage of the latest developments here on our foreign affairs blog, The World.

All times are London time. Curated by Esther Bintliff, assistant Europe news editor in London, with contributions from FT correspondents around the world.

19.30: We’re wrapping up the blog for today, but we’ll be back on Tuesday to cover the latest developments from Greece – where a parliamentary vote is due to take place on the unpopular new property tax – and Germany, where the Greek prime minister is due to meet with chancellor Angela Merkel. In the meantime, please follow the rest of our coverage at ft.com/world

19.18: There was a teensy bit of good news today – or not so bad news. German business confidence, as measured by the Munich-based Ifo institute, fell in September – but by far less than in August. That counts as a positive in these turbulent times…

19.10: The European Central Bank is likely to significantly extend its provision of liquidity to banks next week as it seeks to counter the escalating eurozone debt crisis, reports Ralph Atkins, our Frankfurt bureau chief. But he says it’s still an open question whether the ECB will cut official interest rates as well.

18.55: Donal O’Mahony, global strategist at Davy Capital Markets, points out that the “current convulsions in global markets and economies offer some depressing comparisons to the events of 2008″:

“Once again, nerves are being shredded by the perception of bank solvency and liquidity risks, albeit this time with balance-sheet concerns more focussed on “toxic” sovereign than credit exposures… Once again, the spectre of another calamitous debt default now hangs heavily in the air.”

O’Mahony argues that while the eurozone’s crisis resolution efforts have thus far been hampered by “deep ideological conflicts”, a “more decisive policy approach may finally prevail”, given the dangerously high stakes: namely, the “entire fate of the single currency ideal hanging in the balance”.

18.40: Moves to save the euro have come and gone but it now looks like policymakers recognise the urgency of addressing the problems underlying the eurozone structure. In this video, Lex’s Vincent Boland and Nikki Tait discuss what needs to be done and whether we’ve reached a turning point.

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