Moody’s threatens to lower rating
Credit rating agency Moody’s have warned Britain that they could possibly lose their AAA status, this is the best possible rating and losing it will have major implications on the nations finances. This is the most serious challenge the Coalition have faced on their economy since they came into power.
The British Prime Minister David Cameron and the German Chancellor have met to discuss the eurozone debt crisis in Berlin. The pair also acknowledge their differences in regards to the tactic that should be employed to deal with the single currency region, despite the differences the pair vowed to work together in a spirit of ‘strong friendship’ as their common concern needs solving.
The Italian senate has voted to adopt a package of austerity measures that analysts hope will keep the eurozone’s third largest economy from defaulting on loans or needing a bailout. The move came under pressure from European Union leaders, with the austerity package expected to get final approval from the lower house at the weekend. [...]
The finance minister of the Republic of Ireland, Michael Noonan, said on Thursday that the country should be out of its bailout programme by the end of 2013. Ireland is currently in a 67.5 billion euro bailout as a result of the financial crisis in 2007. Greece is scheduled to stay in their aid programme [...]
The head of the eurozone’s bailout fund is starting attempts to persuade China to help rescue heavily indebted European states. Klaus Regling said after meeting with Chinese leaders that there would be no deal for now. It is still thought that China could pay around 70 billion euros into bailout fund, which EU leaders agreed [...]
Leaders from throughout the European Union are gathering today in Brussels for an emergency summit to hash out the details of a plan to solve the eurozone debt crisis. Earlier this week, German Chancellor Angela Merkel said that she expected the progress already made to result in a “breakthrough” at today’s summit. Doubts Though Merkel [...]
Scenes of anger and violence have spread across Athens after many are feeling resentful over the news of more austerity measures, this has led demonstrators to using violent action to express their feelings with many trying to get a hold on police who were trying to take control of the situation.
Politicians in Slovakia have reached a deal to support the bill ratifying the EU bailout chances. However, in exchange, they have asked for early elections. The same bill had been denied on Tuesday after both a part of the country’s coalition and main opposition said no. Another vote is expected by the end of the week.
US shares rose Monday as investors were calmed by the promises made by French and German leaders on Sunday to protect European banks from the sovereign debt crisis in the eurozone. Markets also were more confident after the announcement that Franco-Belgian bank Dexia would be bailed out.
The governor for the Bank of England, Mervyn King has said that the financial crisis could be the worst the UK has seen—ever. He spoke after the Bank said they would approve further quantitative easing (QE) , which would pump £75 billion into the economy.
Last week, money markets had higher strains with concerns of a potential Greek default combined with trouble at Franco-Belgian bank Dexia. The financial area of the eurozone was deemed to be in trouble, with the worries about money markets taking over the hopes of the austerity plans proposed by the European Central Bank.
The eurozone has put off a decision on the bailout fund for Greece, after the news that Greece will be unable to meet the targets set by the “Troika” of the International Monetary Fund (IMF), the European Central Bank (ECB), and the European Commission (EC). The fact that Greece might not meet the deficit cuts required caused a sell-off on the stock market, meaning more volatility.
Greece has revealed that the budget deficit for the country will be cut in both 2011 and 2012 but that the targets set by the EU and IMF will not be reached for either year. In 2011, the deficit will be 8.5% of GDP, down from the 10.5% seen in 2010, but not quite the 7.6% target.
Wednesday, William Hague, the UK Foreign Secretary commented that the euro is “a burning building with no exits” for several countries which took on the currency. Mr. Hague used the same expression in 1998 as leader of the Tory party and commented that he was proved right.
An overwhelming majority in the German parliament approved the EU’s main bailout fund to have increased powers on Thursday. The vote had been viewed as a test of German Chancellor Angela Merkel’s authority, due to opposition in her coalition government, with Germans against giving more money to bailout Greece and other eurozone members in crisis.
The Office of Fair Trading (OFT) has closed down 62 debt management firms over the last year, in a move to enforce against “rogue operators”. Several companies charging fees have been revealed to have misled customers regarding charges. In addition some have given bad advice.
