FEPS Fresh Thinking

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The debate on Greece and how a solution can be found is causing more and more problems. The public opinion in Northern Europe is influenced by the “pacta sunt servanda” approach, meaning Greece has to fulfil all commitments so far signed. In Southern Europe – especially in Portugal, but also in Spain – it is… » read more

Posted by Ernst Stetter

Yesterday’s decision of the European Central Bank to cut its key interest rate below zero and the other measures announced are more than a European way of the U.S. Quantitative Easing (QE). The ECB cut its main refinancing rate to 0,15% and its deposit rate from zero to minus 0,1%. The European Central bank is… » read more

Posted by Ernst Stetter

Keynes teaches us that we should not slow down growth in periods of already sluggish growth! Last year ended with an EU Summit and 2012 started as 2011 ended. At the beginning of January Merkel and Sarkozy met in Berlin and at the end of the month we will again have another summit. It seems… » read more

Posted by Ernst Stetter

Those who have seen the recent movie Contagion are aware how terrible this is when necessary precautions have not been taken in time. Let us be clear, the “crisis-beast”, or the financial markets have already been very successful in their contagion strategy. We have seen last week that two democratically elected Euro-zone governments, Greece and… » read more

Posted by Ernst Stetter