Greeks Pull Money from Banks ahead of Polls
The Greek election will be closely watched, especially by financial markets hoping for stability in Greece. Many Greeks are reluctant to keep their own money in banks, meaning billions of dollars have left the country's financial system. They have been removing their money from greek banks for two years, sending it to Germany, the United States and other safe havens. As the general election approaches, the initiative has gathered pace. Central bank figures show that deposits shrank by about 17 per cent, or 44.4 billion dollars in 2011. At the end of April this year they stood at 208.1 billion dollars. Consumers are stocking up on nonperishable food, worried about the election outcome. Al Jazeera's Tim Friend reports from Athens.

Greece Tourism Hit by Eurozone Crisis
On the Greek island of Agistri, fewer tourists are now coming to the beaches, and every day the ferries fail to deliver the visitor numbers needed. Greek tourism has been hit hard by Europe's financial crisis, and many locals expect a bleak future ahead. Al Jazeera's Andrew Simmons reports from Agistri.

Eurozone Crisis: If Greece Goes, Germany's Prosperity Goes With It
THE OBSERVER: If the eurozone were to shrink, Germany's once-captive markets would become too poor to import: and the rapid appreciation of a stronger euro would make its exports much pricier

Germany last week found itself able to borrow for two years at the astonishingly low rate of 0.07%. Very nice too: but surely the real message Angela Merkel and her colleagues must take from the successful auction of those zero-coupon schatz bunds is that the single currency simply isn't working.

All the money wants to flow in one direction: towards Germany. It is only the efforts of the European Central Bank, as a giant recycler of liquidity to dry areas of the eurozone banking system, that is ensuring a stability of sorts. This position can't be sustained.

You would be hard-pressed to identify any shift in sentiment in Germany, however. Eurozone politicians had dinner in Brussels on Wednesday and most came away hungry. Mariano Rajoy in Spain is screaming that his country can't afford to keep paying 6% to borrow over 10 years. François Hollande in France and Mario Monti in Italy want to see the introduction of eurobonds, a system of joint issuance of debts. But their prayers have so far gone unanswered, because Germany is not persuaded, even after the rest of the world's most powerful leaders, led by Barack Obama, ganged up on Merkel at last weekend's G8 summit at Camp David.

Her reluctance is, of course, understandable. First, Germany's interest costs would rise, perhaps by €50bn a year, if eurozone members were to borrow collectively, instead of as individual countries. And in the event of one country suffering a crisis, stronger governments – for which read Germany – would be on the hook. » | The Observer | Sunday, May 27, 2012

Davos: David Cameron Says Eurozone Problems 'Man-made'
The prime minister addresses the annual World Economic Forum in Davos, saying three things need to be done urgently in 2012: 'Greece, banks and firewall'. David Cameron told eurozone leaders that with 'bold action and real political will', the problems facing the eurozone could be fixed

Fed Bailing Out the Euro

RUSSIA TODAY: A surprising (if you don't want to say secretive) meeting of the world's most influential central bankers produced even more surprising results.

The US Central bank – the Federal Reserve – promised the cash-strained European Central bank a practically unlimited amount of American taxpayer money for cheap, effectively bailing out the Euro.

Markets are rallying, traders are full of optimism and the Euro is up. The only loser is the dollar: the good old buck has weakened compared to other currencies. The reason? An announcement from the Fed, the European Central Bank, the Bank of Canada, the Bank of Japan, the Bank of England and Swiss National Bank reveals that they are going to provide troubled European banks with massive amounts of cash – cheaper and faster than ever before. Obviously, the lion’s share of assets will be provided by the US Federal Reserve. » | Thursday, December 01, 2011

Mervyn King: The Eurozone Crisis Is 'Systemic'
The Bank of England Governor Sir Mervyn King urges banks to brace themselves for a potential eurozone collapse amid fears that Britain is caught in a second credit crunch.

Read short article here and comment

Eurobond Plan Sets Barroso on Collision Course with Merkel

THE GUARDIAN: The German chancellor has already made clear she does not see eurobonds as a long-term solution to the eurozone crisis

The European commission faces stiff opposition from Germany on Wednesday when it unveils plans to tackle the spiralling sovereign debt crisis with bonds jointly issued by eurozone nations.

Commission president José Manuel Barroso is expected to argue strongly for stability bonds, also known as eurobonds, against a backdrop of soaring borrowing costs and shattered confidence around Europe.

He must then take his plan to French president Nicolas Sarkozy and German chancellor Angela Merkel, who has already made clear she does not see eurobonds as a solution worth considering at this stage in the crisis.

"If at all, this discussion belongs at the end so I don't find it particularly fitting that we are now once again conducting it in the middle of the crisis, as if it were the answer," Merkel said. "In the long term, it isn't." » | Katie Allen and Graeme Wearden | Tuesday, November 22, 2011

’Europe Speaks German’: Britain Told to Stop Being Selfish and Follow Berlin’s Lead

DAILY EXPRESS: BRITAIN was told to toe the Berlin line concerning the eurozone crisis and that all of Europe was 'speaking German' yesterday.

One of Angela Merkel's closest allies demanded that Britain be 'less selfish' towards the EU, despite being outside the single currency and consider levying a Europe-wide financial tax to help the ailing eurozone.

Volker Kauder claimed the whole of Europe was now speaking German by following Angela Merkel's leadership and so should Britain.

He launched into the stinging attack on the UK's financial policies, cranking up tensions ahead of David Cameron's visit to Berlin on Friday.

The German government believes Britain should start taxing financial transactions to help prop up the battered single currency, which could cost the City billions.

Both the Prime Minister and George Osborne have blocked the proposed "Robin Hood tax," with the Chancellor claiming it is a "bullet aimed at the heart of London".

Brussels believes it could raise up to £35billion but it has been called "economic suicide."

Yesterday Mr Kauder, the parliamentary leader of the Christian Democratic Union, said it was unacceptable for Britain to be "only defending its own interests". » | Emily Fox for express.co.uk | Wednesday, November 16, 2011

THE DAILY TELEGRAPH: European Union debt crisis: Britain must help rescue eurozone, say Germans – Britain must give more to the European Union and cannot “get away” with not contributing to the eurozone rescue package, a senior German government figure has said. » | Robert Winnett, Political Editor | Tuesday, November 15, 2011

WELT ONLINE: "Auf einmal wird in Europa Deutsch gesprochen": Schuldenbremse, Haushaltsdisziplin, stärkere Kontrolle: Unions-Fraktionschef Kauder fordert eine einheitliche Politik in Europa – und teilt gegen Erdogan aus. » | Reuters/dpa/pku/mcz | Dienstag 15. November 2011

Eurozone Crisis: Countries May Be 'Pushed Out' of Single Currency

THE GUARDIAN: Debt crisis intensifies as the Netherlands and France come under pressure from rising cost of borrowing

The prospect of a eurozone breakup intensified on Tuesday night as borrowing costs around the region soared and the Dutch prime minister said it should be possible to expel some members from the currency union.

Investors are rapidly losing hope that a solution to the sovereign debt crisis will be found, and their fear was demonstrated by rising bond yields – the rate of interest governments have to pay to borrow – across almost all single-currency countries. The Dutch premier, Mark Rutte, stoked fears that a collapse could become a reality as he aired the prospect of countries being ejected, albeit as a last resort.

"We would like countries to be able to be pushed out of the eurozone," Rutte said on a visit to London, adding member countries must "put out the fire" of the debt crisis. As analysts warned of "terror taking hold", even some of those countries until now regarded as safe havens, such as the Netherlands, came under pressure as fears about countries' creditworthiness spread from peripheral countries such as Greece into Europe's core.

One bond expert described this as the most worrying day yet in the crisis. Mike Riddell, manager of M&G's international sovereign bond fund, said France was now suffering a "full-blown run" on its debt, with investors dumping French bonds to move their money to safer havens. Riddell added that the credit default swap (CDS) market – where investors in effect bet on the prospects of countries going bust – now indicates that the chance of France losing its coveted top AAA rating is a near certainty.

"Even the Netherlands, which the market perceives to be the second strongest eurozone sovereign, is coming under a bit of pressure," he said. » | Katie Allen | Tuesday, November 15, 2011

Eurozone Crisis Gives Britain a Chance to Redraw, Says David Cameron

THE GUARDIAN: As Angela Merkel looks for treaty change to strengthen ties, prime minister is keen to move towards a looser union

The crisis in the eurozone gives Britain the chance to refashion the EU as a looser union, David Cameron said on Monday, after Angela Merkel, the German chancellor, said that she wanted substantial treaty change to strengthen it and give the European commission the chance to impose fiscal discipline on excessively indebted states in the single currency area.

Speaking at the lord mayor's banquet in London, Cameron, describing himself as a sceptic, hailed the collapse of the old assumption that power within the EU could only flow from the nation states to Brussels and EU membership could only lead to ever closer union.

Merkel had earlier described the crisis as probably Europe's toughest hour since the second world war, but again spurned UK proposals for a Eurobond or for the European central bank to become lender of last resort to prop up the euro.

Cameron is due to travel to Berlin at the end of this week both to urge Merkel to make the ECB more interventionist and to set out what the UK will seek to safeguard and change in the event of treaty change being sought by Germany. » | Patrick Wintour, political editor | Monday, November 14, 2011

Eurozone Crisis Will Hit UK Hard, Warns Cameron
THE GUARDIAN: Markets settle after good news from Greece and Italy, but Osborne describes situation in Europe as 'dangerous'

Britain's economy will be hit hard by further turmoil in the eurozone, David Cameron has warned, despite widespread relief on world financial markets as a new leader was installed in Greece and Italian politicians backed harsh austerity measures.

The prime minister insisted a "big question mark" remains over the future of the single currency, amid signs that the political impasse in Italy that sparked panic among investors may be close to a resolution. George Osborne, the chancellor, described events on the continent as "dangerous", adding: "There's no doubt that growth in Britain, jobs in Britain, have been hit by what's going on in the eurozone."

The fragile state of Britain's economy will come back into focus next week, with the latest jobless figures expected to show that public sector job cuts and the collapse of confidence among businesses have caused unemployment to rise rapidly.

The number of young people out of work is expected to hit 1 million, and with Osborne due to deliver his autumn statement on 29 November, pressure is increasing on the government to take urgent action to boost economic growth. The deputy prime minister, Nick Clegg, tells today's Times that Osbornes's autumn statement must deliver for the young, adding that it is "morally imperative" for the government to act. » | Heather Stewart and Allegra Stratton | Saturday, November 12, 2011

Eurozone Crisis: Banks Agree 50% Reduction on Greece's Debt
THE GUARDIAN: Private investors take 'haircut' on Greek bonds in €100bn bailout that also strengthens European rescue fund

Europe's leaders are claiming a victory in the eurozone crisis after agreeing new deals that slash Greek debt and increase the firepower of the main bailout fund to around €1 trillion (£872bn).

Athens will be handed a new €100bn bailout early in the new year. The accord was reached in the early hours of Thursday after hours of debate.

At one stage talks broke down with holders of Greek debt but they ended up accepting a loss or "haircut" of 50% in converting their existing bonds into new loans.

Investors are likely to welcome the breakthrough. Sharp gains are predicted for European markets on opening, with the FTSE 100 being called up 75 points and similar rises expected on the German and French stock markets.

Angela Merkel, the German chancellor, helped broker the deal in talks with the bankers that also included the French president, Nicolas Sarkozy, and the head of the IMF, Christine Lagarde.

Merkel said the swap would take place in January. Sarkozy said private sector investors would refinance Greek's remaining debt at preferential rates while governments would find €30bn to go alongside €100bn from the private sectors. » | David Gow in Brussels | Thursday, October 27, 2011

Video: Eurozone and investors agree to halve Greek debt: Breakthrough in crisis talks as banks accept 50% cut to Greek bonds that will be converted into loans and euro rescue fund is strengthened »

Eurozone bailout deal for Greece – full text: Read the full euro summit statement on the agreement to halve Greece's bond debt to banks, provide bailout funds and bolster the EU's emergency finance system » | guardian.co.uk | Thursday, October 27, 2011