Thursday, 2 October 2008

Newspapers : 2nd October

Europe ‘facing tougher time than US’. Richard Milne, The FT (en)

Spain joins calls to raise bank guarantee limit . Dearbail Jordan and Patrick Hosking, The Times (en)
" ... Spain's decision to speak up in favour of raising deposit protection will create significant pressure on Mr Brown because of the country's strong links to Britain, particularly through Santander, the Spanish banking giant, which has played a significant role in helping to bail-out the UK's banking system during the current crisis ..."

Financial crisis analysis: Europe's centrist parties are crumbling . Damien McElroy, the Telegraph (en)
" ... While the scale of far Right gains has been substantial - Austrian extremists took 29 per cent last week - much of the rise can be seen as a hysterical cry from an electorate with demands the mainstream can't address. ..."

French may copy Irish deposit guarantee. Philip Aldrick, The Telegraph (en)
" ... Bankers said European government and regulators will now have either to adopt the Irish model or force Ireland to retreat. In Britain, copying the move would mean guaranteeing the nation's £2,053bn of retail and corporate deposits ..."

Sarkozy tries to rally united European response to crisis. John Lichfield, The Independent (en)
" ... The Luxembourg Prime Minister, Jean-Claude Juncker, who is chairman of the "Eurogroup" of countries using the euro, meanwhile called for a more coherent European approach. "

The harsh arithmetic behind the banking crisis. Tim Congdon, The Times (en)
Given the harsh arithmetic of a modern banking system, Mr Paulson and Mr Bernanke must try, try and try again to get a similar package through the American political system. If Congress remains pig-headed, a big cut in interest rates, possibly to zero, could be needed to rescue the banking systems and economic prosperity of the leading industrial countries.

Europe split on bank rescue fund. Tony Barber, Nikki Tait, Ben Hall and Krishna Guha, The FT (en)
" ... However, the idea of a fund - which some officials said could have been as large as €300bn (£237bn) - was immediately rejected by Germany and, by Wednesday night, France was rowing back. Britain is also sceptical about the idea of a pan-European fund, preferring to tackle crises on an ad hoc basis, although officials in both the Bank of England and the Treasury are working on a range of plans in case a more co-ordinated approach arises ...
... In Europe, José Manuel Barroso, European Commission president, said the crisis made it imperative to strengthen banking supervision and develop "a truly European response" ...

Amid Economic Tumult, British Party Loses Luster. Sarah Lyall, The NYT (en)
" ..He (David Cameron) added: “Just think about it: if we listened to this argument about experience, we’d never change a government, ever. We’d have Gordon Brown as prime minister — forever.”..."

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