Tuesday, 7 October 2008

Blogs : EU in Financial Turmoil 7th October

Waking Up Europe. Eurosoc 2, EuroSoc (en)

Crise financière: le retour du "fonds de secours européen". Jean Quatremer, Les coulisses de Bruxelles (en)
Le premier ministre danois, Anders Fogh Rasmussen, a tiré, hier, les leçons de ce qui s’était passé : « je constate qu'il n'a pas été possible (…) d'avoir des solutions communes pour l'Europe » : « chaque pays doit donc régler ses problèmes au niveau national ». Les marchés ont logiquement paniqué devant cette absence de stratégie européenne alors que l’Union est un marché intérieur doté d’une monnaie unique (pour quinze pays).

As Europe’s Banks Falter, Is There A Risk To The Eurozone? Edward Hugh, A Fistful of Euros (en)
" ... When push comes to shove, the US Treasury, as we have seen last week, does not concentrate on the needs of Florida or Massachusetts, but on those of the entire United States, and who, may we ask is in a position to concentrate at this point on the financing needs of the whole 15 member eurozone-area, since trying to manage economies which are one organic whole by splitting them analytically into monetary and fiscal entitites simply isn’t going to work, and it never was ...
... Basically Ireland may have quite large problems, but it can, being a small country, “piggy back” from the United Kingdom, by attracting deposits from their larger neighbour. An analysis carried out at Credit Suisse has shown how movements of cash by relatively few depositors may have a bigger effect in countries which a significant proportion of deposits is concentrated among relatively small percentage of the customer base, as is the case in the U.K. (for example) where 4 percent of the banks’ customers hold 45 percent of the deposit base ..."

Sub-prime crisis: storm force winds hit Europe. Michael Berendt, BlogActiv.org (en)
" ... Just a week ago I suggested that continental Europe seemed rather detached from the global credit crisis. Whoops! What terrible timing! In the last seven days Europe has been hit by the storm force winds of this crisis. Liquidity has dried up, governments have been forced to rescue one institution after another, Iceland’s banking system seems close to meltdown, the Irish, the Greeks, the Danes and the Germans have promised open-ended guarantees for bank deposits and the European Commission has been left floundering as the cry of sauve qui peut echoes across the EU ..."

Solidarité. Stanley Crossick, BlogActiv.org (en)
" ... At stake is the future of the Eurozone and EMU. The action by Germany, previously impeccable in the monetary field - without consultation - undermines the authority of the ECB as well as the Member States, and can turn the financial meltdown into a crisis of the euro itself ."

Spluttering? Richard, EUReferendum (en)
" ... But, if a week is a long time in politics, an hour is an eternity in the market in this current febrile situation and this information is already out of date. The market is currently undergoing a rally - but what goes up goes down and goes up ... and down ..."

Protect And Survive. Eurosoc 2, EuroSoc (en)
" At the weekend, Germany's Chancellor Angela Merkel provoked chaos in European treasuries when she appeared to assure Germans that the government would cover their savings in the event of a banking collapse ..."

The credit crunch and the EU. NoseMonkey, EUtopia (en)
" It’s fairly apparent that even the experts haven’t had the first clue what they were doing over the last few years ...
... This whole episode is already going to prove that a single currency simply isn’t enough, that the levels of integration that the EU has so far achieved are simply not enough, that when it comes to the (credit) crunch, we all still look out for number one first, and sod the rest of the continent ..."

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