European Commission

Tom Burgis

A tram passes the euro sign sculpture in front of the European Central Bank ( ECB) in Frankfurt, Germany. Photographer: Hannelore Foerster/Bloomberg

Welcome to our continuing coverage of the eurozone crisis. All times are GMT. By Tom Burgis, James Crabtree and John Aglionby on the news desk in London, with contributions from FT correspondents around the world.

The turmoil in the eurozone has taken a troubling turn in recent days, with anxiety spreading from Europe’s periphery to its “core” countries. Even as Italy’s Mario Monti readies his economic agenda to be presented today, investors are looking at France, the Netherlands and Austria with increasing unease and wondering whether the ECB might yet ride to the rescue. Over in Greece, today is the anniversary of 1973′s mass student protests – with demonstrators once more planning to take to the streets. And the bond markets are showing ever more strain, with today’s Spanish bond auction souring sentiment still further. Read more

Welcome back to the FT’s live coverage of the eurozone crisis and the global fallout. By Tom Burgis and David Crouch in London with contributions from correspondents around the world. All times are GMT.

Italian bond yields are back up over 7 per cent, and French and Spanish bonds are also under pressure. Stock markets are down across Europe. Meanwhile, Mario Monti – Italy’s prime minister designate – is battling to create a new government capable of dragging Italy out of the eye of the storm.

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17.59 We are wrapping up our rolling coverage – thank you for reading. But before we go, here is a quick reminder of today’s latest FT news and insights on the eurozone crisis:

  • Italian prime minister designate Mario Monti will see president Georgio Napolitano on Wednesday morning to present his new government, after he received the backing of outgoing premier Silvio Berlusconi’s People of Lilverty party
  • Following anaemic data on European economies today, more than three quarters of fund managers predicted Europe will slide into recession next year
  • Italy’s 10-year bond yield once again soared above the 7 per cent mark and French yields hit a record spread over German Bunds, causing global markets to wobble
  • US Treasury yields were close to unchanged as better-than-expected retail sales data offset safe-haven buying due to rising eurozone yields
  • The Austrian coalition government, faced with rising yields on government debt and a possible downgrade, decided to accelerate the pace of spending cuts
  • German frustration over Britain’s approach to the eurozone crisis was laid bare after a close ally of Angela Merkel accused the UK of selfishly pursuing its own interests just days before a meeting in Berlin between the German chancellor and UK prime minister David Cameron

 Read more

John Aglionby

Silvio Berlusconi – shutting one's eyes won't make the problems go away. Image AFP/Getty

Welcome back to the FT’s coverage of the eurozone crisis. Curated by John Aglionby, Tom Burgis and David Crouch on the news desk in London, with contributions from correspondents around the world. All times are GMT.

Greece really is expected to get a new prime minister today – 48 hours later than expected. Italy, well who knows what’s going to happen there as bond yields surge and the EU’s economic inspectors arrive … And policymakers and financiers are becoming increasingly concerned about the impact of the crisis on global liquidity levels.

18.53 That’s it for our live coverage today. We leave you with a round-up of where we stand at the end of another turbulent day in Europe – and some cold hard numbers (and letters) for your bedtime reading.

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Tom Burgis

Welcome back to our continuing coverage of the eurozone crisis. In the early hours of the morning, eurozone leaders emerged from their summit in Brussels with a deal designed to stem the sovereign debt crisis. The markets seem pleased but big questions on the details remain. We’ll bring you reactions, news and commentary as we get it throughout the day.

All times are London time. By Tom Burgis on the news desk in London, with contributions from FT correspondents around the world.

18.34: It’s time to wrap up the live blog for today. But keep reading FT.com through the evening for:

18.13: Der Spiegel has a nice tale about whether or not Angela Merkel did in fact apologise to Silvio Berlusconi for appearing to smirk when asked publicly if she still had faith in his leadership.

18.07: Chatham House has just published a paper arguing that international debt bailout systems are ill-equipped to handle any further instability.

“As the problems in the eurozone deepen and threaten to spread globally, action is required to strengthen financial safety nets beyond what was agreed by EU Heads of State on 27 October 2011.”

Read the full report by Stephen Pickford, former managing director at the UK Treasury and former executive director at the IMF.

18.00: An evening update of the day’s developments:

  • At the end of trading in Europe, the FTSE Eurofirst 300 finished 3.69 per cent higher for the day at 1,020. US stocks rose too, with GDP numbers that matched expectations adding to a positive reception for the EU’s moves
  • Despite the ebullience in equities markets, concerns remained over soveriegn debt in the eurozone. Italian government bond yields first sank to 5.7 per cent, before rebounding to 5.9 per cent, near their euro-era highs
  • Questions remain over the details of the eurozone deal, notably over the terms of the new bonds that will replace existing Greek debt as part of the agreed 50 per cent “haircut” (see 13.17), how banks will go about raising new capital and where the cash to fund the various eurozone plans will come from
  • European officials are keen to involve China and other Bric nations in a fund to buy eurozone debt, though here too there are no firm plans yet

 Read more


Welcome to our rolling coverage of the eurozone crisis.
All times are London time. Curated by Esther Bintliff and John Aglionby on the world news desk in London, with contributions from FT correspondents around the world.

19.23: We’re winding up the rolling blog for today but thanks for reading, and do follow the rest of our coverage at ft.com/world. We’ll be back tomorrow to cover the crucial German parliamentary vote on expanding the EFSF (will Merkel preserve her absolute majority?) aswell as any other eurozone shenanigans…

19.21: Earlier we referred to some comments made by Angela Merkel in an interview with Greek TV late last night. Here’s the full story, from which:

Angela Merkel, German chancellor, has warned Greece that a €109bn rescue package, approved by the 17 eurozone leaders in July, may have to be reviewed if Athens fails to meet deficit reduction targets agreed with the European Union and International Monetary Fund.

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Gideon Rachman

When the European Union works well, the co-operation of three crucial partners is vital: France, Germany and the European Commission. It was the alliance of the Franco-German couple, allied to a powerful commission president in the shape of Jacques Delors, that led to the creation of a single European currency.

So it is a sign of the huge disarray at the heart of the European Union that the current president of the commission, José Manuel Barroso, is feuding openly with the German government. Even a few years ago, this would have been unthinkable. But now Barroso is calling German plans to re-open the Lisbon Treaty “naive”, criticising Germany for being too slow to act on the Greek bail-out, and pointedly reminding the Germans that the euro was all their idea in the first place. German ministers, meanwhile, have responded with even more aggressive language – openly calling Barroso’s charges “absurd”. Privately, top officials in Berlin have been cruelly dismissive of the commission president for months, accusing him of grovelling to secure his re-appointment. Read more